Shanghai: SSE Composite Index (.SSEC) gains on positive sentiment about trade talks next week
Major Chinese stock indices, led by consumer electronics sector, ended higher Thursday, with the benchmark Shanghai Composite Index up 0.48 percent to 2,937.36 points.
The Shenzhen Component Index closed 0.85 percent higher at 9,344.82 points.
The combined turnover of stocks on the two exchanges stood at 399.53 billion yuan (about 58.1 billion U.S. dollars), slightly shrinking from 400.3 billion yuan in the previous trading day.
Gainers outnumbered losers by 725 to 630 on the Shanghai bourse and 1,065 to 926 in Shenzhen.
Stocks of consumer electronics sector and companies related to free trade ports were biggest winners. Shenzhen Desay Battery Technology Co., Ltd., climbed the daily limit of 10 percent to finish at 29.55 yuan per share.
Bucking the trend, shares of mining services sector led the losses, with Sino Geophysical Co., Ltd., a tech firm that develops technologies to raise the efficiency of oil recovery, plunging 8.65 percent to finish at 30.3 yuan apiece.
The ChiNext Index, China’s NASDAQ-style board of growth enterprises, gained 0.8 percent to close at 1,566.08 points.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 2,951.84.
The projected upper bound is: 3,025.19.
The projected lower bound is: 2,849.47.
The projected closing price is: 2,937.33.
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.
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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 66.6948. This is not an overbought or oversold reading. The last signal was a buy 8 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 49.90. 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 53 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 48. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 14.083 at 2,937.360. Volume was 43% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,921.50 2,926.23 2,816.27
Volatility: 13 19 27
Volume: 14,971,555,840 19,313,176,576 22,677,174,272
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.
SSE COMPOSITE is currently 4.3% above its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 7 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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