Shanghai: SSE Composite Index (.SSEC) financial markets need to improve transaction and consulting services to meet the needs of global investors

Shanghai: SSE Composite Index (.SSEC) financial markets need to improve transaction and consulting services to meet the needs of global investors

Shanghai: SSE Composite Index (.SSEC) financial markets need to improve transaction and consulting services to meet the needs of global investors

Shanghai needs to improve in areas including financial product pricing and transaction services in order to become a global center for yuan-denominated assets, central bank Governor Yi Gang said Thursday at a high-level forum.

As global index compiler MSCI and Bloomberg have now included Chinese A-shares and bonds respectively into their indexes, Shanghai’s financial markets need to improve transaction and consulting services to meet the needs of global investors who hold or trade these yuan-denominated assets, Yi said at the Lujiazui Forum, an annual gathering of senior financial regulators, experts and market participants in Shanghai.

Shanghai markets also need to accurately price financial products to make the city a crucial global asset-pricing center, and improve risk hedging tools including different types of financial derivatives, Yi said.

The central bank supports Shanghai’s efforts in applying new technologies such as artificial intelligence, big data and blockchain to the financial sector, said Yi.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 2,946.85.

The projected upper bound is: 3,045.37.

The projected lower bound is: 2,772.74.

The projected closing price is: 2,909.06.

Candlesticks

A white body occurred (because prices closed higher 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 25 white candles and 25 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 88.4540. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 48.51. 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 23 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 58. This is not a topping or bottoming area. The last signal was a buy 2 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 12 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 1.361 at 2,910.740. Volume was 30% below average (neutral) and Bollinger Bands were 64% narrower than normal.

Open High Low Close Volume___
2,905.2882,918.4232,885.9232,910.74021,295,779,840

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

Moving Averages: 10-period 50-period 200-period
Close: 2,884.40 3,024.06 2,781.52
Volatility: 19 29 27
Volume: 20,443,471,872 27,941,400,576 21,577,332,736

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 4.6% above its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 31 periods.

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