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Shanghai: SSE Composite Index (.SSEC) end higher as political tensions over extradition bill subside


Shanghai: SSE Composite Index (.SSEC) end higher as political tensions over extradition bill subside

Hong Kong and China stocks rose on Tuesday, as investors remained cautiously optimistic ahead of a US Federal Reserve policy meeting and amid cooling political tensions over a controversial legislation in the city.

The Hang Seng Index climbed 1 per cent to 27,498.77 by close, breaching the 20-day moving average of 27,258.74, which is seen by technical analysts as a key resistance level. Turnover stood at HK$71 billion, below the daily average of HK$97 billion in May.

The Shanghai Composite Index added 0.1 per cent, or 2.54 points, to 2,890.16. The Shenzhen Component Index rose 0.3 per cent, and the ChiNext Index of small companies gained 0.9 per cent.

Turnover in Shenzhen and Shanghai was 321.7 billion yuan (US$46 billion), the lowest level in four months.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 3,009.59.

The projected lower bound is: 2,759.26.

The projected closing price is: 2,884.42.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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 47.1800. This is not an overbought or oversold reading. The last signal was a sell 2 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 46.07. 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 0. This is not a topping or bottoming area. The last signal was a buy 5 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 15 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 2.536 at 2,890.158. Volume was 52% below average (consolidating) and Bollinger Bands were 69% narrower than normal.

Open High Low Close Volume___

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

Moving Averages: 10-period 50-period 200-period
Close: 2,880.92 3,008.50 2,783.77
Volatility: 20 27 27
Volume: 19,445,202,944 26,399,059,968 21,662,879,744

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 3.8% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 2 periods.

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.