Shanghai: SSE Composite Index (.SSEC) helped by increasing optimism about the prospects for a Sino-U.S. trade deal

Shanghai: SSE Composite Index (.SSEC) helped by increasing optimism about the prospects for a Sino-U.S. trade deal

Shanghai: SSE Composite Index (.SSEC) helped by increasing optimism about the prospects for a Sino-U.S. trade deal

China stocks ended higher on Monday, helped by increasing optimism about the prospects for a Sino-U.S. trade deal.

The blue-chip CSI300 index rose 0.7% to 3,978.12, while the Shanghai Composite Index added 0.6% to 2,975.49.

The United States and China on Friday said they made progress in talks aimed at defusing a nearly 16-month-long trade war that has harmed the global economy, and U.S. officials said a deal could be signed this month.

The Chinese Commerce Ministry on Friday said the world’s two largest economies had reached “consensus on principles” during a “serious and constructive” telephone call between their main trade negotiators.

Investors also seemed to be encouraged by Beijing’s increasing efforts to open up its financial markets.

China’s justice ministry on Friday published draft rules to allow foreign companies to list on the country’s stock exchanges, with the intention of implementing the changes on Jan. 1.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,045.25.

The projected lower bound is: 2,911.80.

The projected closing price is: 2,978.53.

Candlesticks

A white body occurred (because prices closed higher 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 29 white candles and 21 black candles for a net of 8 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 57.2598. This is not an overbought or oversold reading. The last signal was a sell 3 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 54.61. 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 sell 29 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 90. This is not a topping or bottoming area. The last signal was a sell 14 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 0 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 17.293 at 2,975.492. Volume was 2% below average (neutral) and Bollinger Bands were 50% narrower than normal.

Open     High      Low     Close     Volume___
2,964.5762,983.0582,964.5762,975.49216,724,836,352
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,952.81 2,950.99 2,921.46
Volatility: 12 14 23
Volume: 14,920,628,224 17,429,133,312 23,172,677,632

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
SSE COMPOSITE is currently 1.8% 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 18 periods.

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