Shanghai: SSE Composite Index (.SSEC) fall ahead of new tariffs

Shanghai: SSE Composite Index (.SSEC) fall ahead of new tariffs

Shanghai: SSE Composite Index (.SSEC) fall ahead of new tariffs

Asian markets fell Monday after a steep decline in the U.S. technology sector weighed on Wall Street at the end of the week despite data showing the economy was growing.

Asian equity markets as it is have seen a soft start this morning, taking after last Friday’s US markets’ tone. In addition, risk aversion is likely to have set in for markets at the fore of a string of event risks this week that would keep investors occupied,” such as eurozone and U.S. economic indicators, Jingyi Pan of IG said in a commentary.

The U.S. and China set additional tariffs of 25 percent on $16 billion worth of each other’s goods on Thursday, marking a new escalation in an acrimonious trade war between the world’s two largest economies.

China’s commerce ministry said that China resolutely opposes the latest U.S. tariffs, and that it would file a complaint to the WTO against the tariffs.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 2,888.36.

The projected upper bound is: 2,835.57.

The projected lower bound is: 2,610.70.

The projected closing price is: 2,723.14.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 78.1556. This is not an overbought or oversold reading. The last signal was a buy 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 43.85. 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 34 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 -24. This is not a topping or bottoming area. The last signal was a buy 3 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 0 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 4.806 at 2,729.431. Volume was 25% below average (neutral) and Bollinger Bands were 6% narrower than normal.

Open High Low Close Volume___
2,717.0812,748.8242,705.3242,729.43110,051,627,008

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

Moving Averages: 10-period 50-period 200-period
Close: 2,726.52 2,804.84 3,151.97
Volatility: 19 25 20
Volume: 11,029,867,520 13,448,375,296 15,786,130,432

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 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 6 periods.

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