Shanghai: SSE Composite Index (.SSEC) higher on strong economic data
China stocks rose Monday on stronger-than-expected November economic data, but Hong Kong shares fell on profit taking.
The Shanghai Composite Index rose 0.6 per cent to 2,984.39, while the CSI 300, which tracks blue chips listed on Shenzhen and Shanghai, rose 0.5 per cent to 3,987.55.
By contrast, the Hang Seng Index lost 0.7 per cent to finish at 27,508.09, snapping a three straight session winning streak.
Industrial production, which measures China’s industrial output including manufacturing, mining and utilities, grew by 6.2 per cent in November, up from October’s 4.7 per cent. Meanwhile, retail sales grew by 8.0 per cent in November, up from 7.2 per cent a month ago.
The data followed the phase one US-China trade deal last week, which some analysts say has removed a level of uncertainty that clouded the outlook of the equities market in recent weeks.
Selective brokerages performed well, with CSC Financial hitting the 10 per cent daily up limit, to 27.12 yuan; Huatai Securities rose 3.2 per cent to 19.13 yuan. Their gains came after China’s securities watchdog said it would relax requirements for A-share companies to spin off and separately list their subsidiaries on the domestic exchanges.
Tech stocks also did well, with Foxconn Industrial rising 1.2 per cent to 19.15 yuan, TCL Corp climbing 9.9 per cent to 4.33 yuan, and Universal Scientific Industrial hitting the 10 per cent up limit at 20.08 yuan.
Both Shenzhen Refond Optoelectrnoics and HC SemiTek hit the daily up limit, rising to 7.56 yuan and 7.18 yuan respectively.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 3,043.67.
The projected lower bound is: 2,928.28.
The projected closing price is: 2,985.98.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 91.7220. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 20 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 66.28. 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 59 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 205.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 buy 6 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 16.716 at 2,984.393. Volume was 30% above average (neutral) and Bollinger Bands were 30% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,919.83 2,933.21 2,965.48
Volatility: 11 12 22
Volume: 15,986,775,040 14,815,152,128 22,652,874,752
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 0.6% above its 200-period moving average and is in an upward trend. Volatility is 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 2 periods.
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