Shanghai: SSE Composite Index (.SSEC) downward trend from last week on Wall Street

Shanghai: SSE Composite Index (.SSEC) downward trend from last week on Wall Street

Shanghai: SSE Composite Index (.SSEC) downward trend from last week on Wall Street

Stocks in Asia were mixed on Tuesday, as Wall Street slipped overnight and amid geopolitical tensions between Saudi Arabia and the international community.

The Greater China markets lost their earlier gains to land in negative territory. Hong Kong’s Hang Seng index slipped by 0.23 percent in afternoon trade. The Shanghai composite shed 0.85 percent to close at around 2,546.33, while the Shenzhen composite fell by 1.929 percent to end the trading day at about 1,256.37.

China’s consumer inflation in September rose 2.5 percent compared to a year ago and 0.7 percent higher than August, government data on Tuesday showed. Producer inflation however cooled from gains of 4.1 percent in August — an indication of slowing economic momentum amid escalating trade tensions with the U.S.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 2,780.38.

The projected upper bound is: 2,657.50.

The projected lower bound is: 2,422.25.

The projected closing price is: 2,539.88.

Candlesticks

A black body occurred (because prices closed lower 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 25 white candles and 25 black candles.

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 17.1840. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 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 32.70. 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 65 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 -137.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 sell 3 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -21.769 at 2,546.330. Volume was 7% below average (neutral) and Bollinger Bands were 35% wider than normal.

Open High Low Close Volume___
2,567.7642,597.7152,536.4412,546.33011,941,914,624

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,688.81 2,725.82 3,051.89
Volatility: 39 28 23
Volume: 13,828,425,728 12,147,332,096 15,052,810,240

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 16.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 2 periods.

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