Shanghai: SSE Composite Index (.SSEC) downward pressure on economic growth
Chinese stocks kicked off the month on a positive note, with traders encouraged by signs that officials will increase stimulus to support the nation’s slowing economy. The yuan jumped after the central bank set the fixing at a stronger-than-expected level.
October was the index’s worst month since May 2012 – a loss of 7.5 per cent – as shares globally took a battering on a number of factors ranging from trade wars to concerns about the global economy and higher US interest rates.
The improved mood had filtered down to Asia from Wall Street, which rose for a second day on Wednesday as strong company results and bargain hunting of beaten-down technology and internet favourites lifted spirits.
Hong Kong’s Hang Seng rose 1.5 per cent on Thursday and the Shanghai Composite Index climbed 0.2 per cent.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 2,735.71.
The projected upper bound is: 2,729.55.
The projected lower bound is: 2,478.25.
The projected closing price is: 2,603.90.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 62.6447. This is not an overbought or oversold reading. The last signal was a buy 9 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 47.20. 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 9 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 86. This is not a topping or bottoming area. The last signal was a buy 9 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 3.454 at 2,606.237. Volume was 52% above average (neutral) and Bollinger Bands were 20% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,592.53 2,678.93 3,008.59
Volatility: 35 30 24
Volume: 17,009,636,352 12,813,803,520 15,118,565,376
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.
SSE COMPOSITE is currently 13.4% below its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 14 periods.