Shanghai: SSE Composite Index (.SSEC) government incentives might bring more confidence to the stock market
Chinese stocks rebounded after steep declines on Thursday, closing higher on Friday with blue-chip stocks leading the rally, and experts expected that government incentives might bring more confidence to the stock market.
The benchmark Shanghai Composite Index gained 0.91 percent to close at 1,428.03 points. The Shenzhen Component Index closed 0.45 percent higher to end at 7,558.28 points.
Blue-chip stocks led the gains. The SSE 50 Index, which tracks 50 stocks on the Shanghai Stock Exchange with large market capitalization and high liquidity, jumped by 2.24 percent.
Combined turnover on the two bourses stood at 308.9 billion yuan ($44.7 billion)
Experts predicted that these measures may bring more confidence to the A-share market.
The liquor industry was among the biggest winners on Friday, with the share price of Kweichow Moutai, the country’s leading liquor maker, up 3.57 percent.
The financial sector also saw strong performance, with Pingan Bank rising 4.46 percent to end at 10.3 yuan.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 2,718.02.
The projected lower bound is: 2,484.79.
The projected closing price is: 2,601.41.
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 25 white candles and 25 black candles.
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 18.8758. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 37.26. 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 63 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 -173.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 1 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 23.455 at 2,606.913. Volume was 33% above average (neutral) and Bollinger Bands were 11% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,735.23 2,738.38 3,059.11
Volatility: 43 27 23
Volume: 14,148,470,784 12,267,388,928 15,059,555,328
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 14.8% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 0 periods.