Shanghai: SSE Composite Index (.SSEC) hopes for a resumption of negotiations

Shanghai: SSE Composite Index (.SSEC) hopes for a resumption of negotiations

Shanghai: SSE Composite Index (.SSEC) hopes for a resumption of negotiations

China stocks rebounded on Thursday morning after China delivered a written response to US trade demands, lifting hopes for a resumption of negotiations, and as property firms gained after data showed new home prices rose in October.

At the midday break, the Shanghai Composite index was up 18.27 points, or 0.69 per cent, at 2,650.51. China’s blue-chip CSI300 index was up 0.49 per cent, with its financial sector sub-index higher by 0.83 percent, the consumer staples sector up 0.41 per cent and the healthcare sub-index down 0.42 per cent.

China has delivered a written response to US demands for wide-ranging trade reforms in a move that could trigger negotiations to bring an end to a withering trade war between the world’s top economies.

A sub-index tracking real estate firms gained 0.43 per cent as new data showed that average new home prices in China’s 70 major cities rose 1.0 per cent in October despite slowing investment, led by gains in smaller cities.

Largest percentage gainers in the main Shanghai Composite index were Shanghai Shibei Hi-Tech Co Ltd, up 10.04 per cent, followed by Pci-Suntek Technology Co Ltd, gaining 10.03 per cent and Jiangxi Hongdu Aviation Industry Co Ltd, up by 10.02 per cent.

Largest percentage losers in the Shanghai index were Shanghai Sunglow Packaging Technology Co Ltd Co Ltd, down 10.01 per cent, followed by Nanjing Chixia Development Co Ltd, losing 5.21 per cent and Harbin Gong Da High-Tech Enterprise Development Co Ltd, down by 5.11 per cent.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,805.40.

The projected lower bound is: 2,550.48.

The projected closing price is: 2,677.94.

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 25 white candles and 25 black candles.

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 80.4686. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 55.09. 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 20 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 16 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 10.939 at 2,679.110. Volume was 73% above average (neutral) and Bollinger Bands were 36% narrower than normal.

Open High Low Close Volume___
2,669.7802,695.5692,657.0342,679.11024,219,885,568

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

Moving Averages: 10-period 50-period 200-period
Close: 2,646.56 2,660.95 2,966.09
Volatility: 17 31 25
Volume: 19,555,239,936 14,760,003,584 15,044,235,264

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 9.7% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 1 periods.

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