Shanghai: SSE Composite Index (.SSEC) higher on hopes China and the United States could sign a trade deal

Shanghai: SSE Composite Index (.SSEC) higher on hopes China and the United States could sign a trade deal

Shanghai: SSE Composite Index (.SSEC) higher on hopes China and the United States could sign a trade deal

China stocks closed up on Monday, on hopes China and the United States could sign a trade deal and that Beijing would continue its policy support for the economy.

The blue-chip CSI300 index rose 0.3%, to 3,880.84, while the Shanghai Composite Index added 0.1% to 2,939.62.

U.S. President Donald Trump on Friday said he thought a trade deal between the United States and China would be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on Nov. 16 and 17.

Chinese Vice Premier Liu He said on Saturday that China would work with the United States to address each other’s core concerns on the basis of equality and mutual respect, and that stopping the trade war would be good for both sides and the world.

Data on Friday showed China’s GDP growth slowed to a near 30-year low, reinforcing hopes Beijing will roll out fresh support.

China’s state planner in September more than doubled its approval for fixed-asset investment projects, as Beijing looks to step up support for the economy.

China on Monday unexpectedly kept unchanged its new benchmark lending rate, though analysts argued the decision does not point to an end to the downward adjustment in the loan prime rate (LPR).

Overall China’s economy in the first three quarters remained relatively stable, showing strong resilience, and there would be a positive impact from the Sino-U.S. trade talks if they move towards solving the problem, Guosen Securities noted in a report.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,013.48.

The projected lower bound is: 2,868.63.

The projected closing price is: 2,941.05.

Candlesticks

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 29 white candles and 21 black candles for a net of 8 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 22.7112. 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 46.56. 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 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 -53. This is not a topping or bottoming area. The last signal was a sell 4 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 up 1.477 at 2,939.618. Volume was 26% below average (neutral) and Bollinger Bands were 35% narrower than normal.

Open     High      Low     Close     Volume___
2,933.8972,940.3252,917.6882,939.61813,247,510,528
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,959.25 2,920.38 2,898.84
Volatility: 14 16 23
Volume: 14,702,741,504 17,568,786,432 23,047,098,368

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 1.4% 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 8 periods.

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