Shanghai: SSE Composite Index (.SSEC) end higher on stimulus measures

Shanghai: SSE Composite Index (.SSEC) end higher on stimulus measures

Shanghai: SSE Composite Index (.SSEC) end higher on stimulus measures

China shares closed higher on Thursday after Beijing laid out plans to bolster its economy, which included investments in infrastructure and easing of residency curbs.

The blue-chip CSI300 index rose 0.9% to 4,025.99, while the Shanghai Composite Index closed up 0.9% at 3,007.35.

China plans 800 billion yuan ($114.32 billion) in railway investment, 1.8 trillion yuan in highway and waterway investment and 90 billion yuan in civil aviation investment in 2020, state radio said, citing Minister of Transport Li Xiaopeng.

The CSI300 infrastructure index jumped 0.9% following the news.

Real estate index rallied 2.9% and was the top gainer among all sectors.

China scrapped restrictions on household registration permits for cities under 3 million population, and comprehensively loosened such curbs for cities of 3 million to 5 million residents, according to a document issued by the cabinet.

In April, China said it would relax residency curbs in many of its smaller cities this year and increase infrastructure spending.

Easing norms for urban residency will promote urbanization and boost housing demand, Huachuang Securities analyst Yuan Haos said in a report.

On the trade front, China on Wednesday said both sides’ economic and trade teams were in close communication about detailed arrangements for the phase one deal’s signing and other follow-up work.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,068.03.

The projected lower bound is: 2,947.88.

The projected closing price is: 3,007.95.

Candlesticks

A white body occurred (because prices closed higher 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 28 white candles and 22 black candles for a net of 6 white 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 43.7954. This is not an overbought or oversold reading. The last signal was a sell 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 62.26. 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 sell 4 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 55. This is not a topping or bottoming area. The last signal was a sell 4 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 14 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 25.474 at 3,007.354. Volume was 8% above average (neutral) and Bollinger Bands were 32% wider than normal.

Open     High      Low     Close     Volume___
2,981.2493,007.3542,980.3963,007.35418,244,042,752
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,994.82 2,938.83 2,965.58
Volatility: 16 13 21
Volume: 21,115,039,744 15,814,861,824 21,611,714,560

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 1.4% above its 200-period moving average and is in an upward trend. Volatility is 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 10 periods.

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