Shanghai: SSE Composite Index (.SSEC) have suffered recently from the country’s ongoing trade spat with the U.S.

Shanghai: SSE Composite Index (.SSEC) have suffered recently from the country’s ongoing trade spat with the U.S.

Shanghai: SSE Composite Index (.SSEC) have suffered recently from the country’s ongoing trade spat with the U.S.

Chinese stocks have suffered recently from the country’s ongoing trade spat with the U.S., their Japanese peers have benefited from improved earnings and the Bank of Japan’s annual purchase of up to 6 trillion yen ($54 billion) in exchange-traded funds. Still, market observers are divided over what impact the mounting trade war might have on Japan.

If China and the U.S. are going to throw bricks at each other’s windows, it pays to be the one that sells glass to both sides.

Chinese stocks declined Friday, with the benchmark Shanghai Composite Index down 1 percent to close at 2,740.44. The Shenzhen Component Index closed 2.03 percent lower at 8,602.12.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 2,840.36.

The projected lower bound is: 2,623.95.

The projected closing price is: 2,732.16.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 19 white candles and 31 black candles for a net of 12 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 12.9515. 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 35.14. 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 19 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 -123.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 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 -27.581 at 2,740.443. Volume was 10% below average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
2,763.3962,777.6572,740.4322,740.44312,700,636,160

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

Moving Averages: 10-period 50-period 200-period
Close: 2,850.30 2,909.83 3,200.67
Volatility: 21 24 19
Volume: 16,068,442,112 13,624,899,584 16,054,391,808

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 14.4% 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 8 periods.

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