Shanghai: SSE Composite Index (.SSEC) down more than 22 percent from its 52-week high

Shanghai: SSE Composite Index (.SSEC) down more than 22 percent from its 52-week high

Shanghai: SSE Composite Index (.SSEC) down more than 22 percent from its 52-week high 

Chinese equities have been among the worst performers globally this year amid the slowing Chinese economy and the country’s ongoing trade dispute with the U.S.

Both the Shanghai Composite and Shenzhen Composite were in bear market territory at the end of Monday. The Shanghai benchmark was down more than 22 percent from its 52-week high at the previous market close.

Even though the Shanghai share average remained stuck in a downtrend, Hao suggested that some near-term upside is a possibility.

I think the downward trend is intact, but then I think in the near term, because the market is so oversold, and also because we’re detecting some policy shift from the top, so I wouldn’t be surprised to see some consolidation or even a small technical rebound from here.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 2,913.68.

The projected upper bound is: 2,884.52.

The projected lower bound is: 2,665.00.

The projected closing price is: 2,774.76.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.4996. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 44.89. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 26 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -31. This is not a topping or bottoming area. The last signal was a buy 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -4.907 at 2,780.965. Volume was 21% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
2,780.7362,789.4442,766.5692,780.96510,957,107,200

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,771.81 2,863.53 3,179.34
Volatility: 28 25 20
Volume: 13,880,171,520 13,633,251,328 16,016,354,304

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

SSE COMPOSITE is currently 12.5% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 15 periods.

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