Shanghai: SSE Composite Index (.SSEC) falling 2.06 percent to close at 2,723.64

Shanghai: SSE Composite Index (.SSEC) falling 2.06 percent to close at 2,723.64

Shanghai: SSE Composite Index (.SSEC) falling 2.06 percent to close at 2,723.64

The China stock market has moved lower in consecutive trading days, sliding almost 15 points or 0.6 percent along the way. The Shanghai Composite Index now rests just above the 2,780-point plateau although it should find traction on Wednesday.

The global forecast for the Asian markets is cautiously optimistic thanks to easing concerns about the financial crisis in Turkey. The European markets were down and the U.S. bourses were higher – and the Asian markets figure to follow the latter lead.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 2,911.46.

The projected upper bound is: 2,826.56.

The projected lower bound is: 2,604.32.

The projected closing price is: 2,715.44.

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 21 white candles and 29 black candles for a net of 8 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 53.3379. 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 38.70. 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 27 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 -77. This is not a topping or bottoming area. The last signal was a buy 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 0 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -57.707 at 2,723.258. Volume was 16% below average (neutral) and Bollinger Bands were 4% wider than normal.

Open High Low Close Volume___
2,777.2492,777.7032,721.2402,723.25811,616,179,200

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

Moving Averages: 10-period 50-period 200-period
Close: 2,761.69 2,855.71 3,176.01
Volatility: 28 25 20
Volume: 13,546,645,504 13,628,103,680 16,004,486,144

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 14.3% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 16 periods.

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