Home Asia Shanghai: SSE Composite Index (.SSEC) Expected Sideways Trading

Shanghai: SSE Composite Index (.SSEC) Expected Sideways Trading

28
0

Shanghai: SSE Composite Index (.SSEC) Expected Sideways Trading

Chinese stocks closed mixed on Wednesday, with the benchmark Shanghai Composite Index down 0.19 percent, at 2,976.28 points.

The Shenzhen Component Index closed 0.05 percent higher at 9,122.43 points.

The combined turnover of stocks in the two indices stood at 391.7 billion yuan (about 57.02 billion U.S. dollars), shrinking from 513.3 billion yuan the previous trading day.

Most stocks fell. The Shanghai bourse saw 679 gainers and 678 losers, while losers outnumbered gainers by 1,091 to 936 in Shenzhen.

Companies in the environmental protection and non-ferrous metal industries were among the biggest losers.

Fujian Longma Environmental Sanitation Equipment Co., Ltd., a manufacturer of environmental-protection devices and facilities, lost 9.98 percent to 20.47 yuan per share, while Henan Yuguang Gold & Lead Co., Ltd., smelting and dealing non-ferrous metals, dropped by the daily limit of 10 percent to close at 5.19 yuan per share.

The ChiNext Index, China’s NASDAQ-style board of growth enterprises, grew 0.41 percent to close at 1,504.55 points.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,098.65.

The projected lower bound is: 2,845.37.

The projected closing price is: 2,972.01.

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 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 78.4504. This is not an overbought or oversold reading. The last signal was a sell 0 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 56.28. 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 32 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 75. This is not a topping or bottoming area. The last signal was a sell 1 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 21 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -5.790 at 2,976.284. Volume was 44% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
2,964.6152,986.9142,958.4632,976.28417,444,954,112

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

Moving Averages: 10-period 50-period 200-period
Close: 2,944.39 2,978.38 2,791.79
Volatility: 17 27 27
Volume: 21,674,489,856 24,270,788,608 22,066,851,840

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 6.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 8 periods.

Previous articleBritish Pound: USD/GBP (GBP=X) tumbled due to fresh comments from Federal Reserve officials
Next articleAustralia: S&P/ASX 200 (.AXJO) local investors largely shrugged off a Fed-driven sell-off
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.