Shanghai: SSE Composite Index (.SSEC) hopes that Beijing and Washington could reach a deal to end their tariff war

Shanghai: SSE Composite Index (.SSEC) hopes that Beijing and Washington could reach a deal to end their tariff war

Shanghai: SSE Composite Index (.SSEC) hopes that Beijing and Washington could reach a deal to end their tariff war

Chinese stocks rose on Friday, posting their third straight week of gains, buoyed by hopes that Beijing and Washington could reach a deal to end their tariff war.

The blue-chip CSI300 index closed up 1.8 percent at 3,168.17 points, while the Shanghai Composite Index rose 1.4 percent to 2,596.01 points.

For the week, CSI was up 2.4 percent, while SSEC gained 1.7 pct, both up for a third straight week and posting their biggest weekly gains in two months.

The Wall Street Journal reported on Thursday that U.S. Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for Jan. 30.

Chinese Vice Premier Liu He will visit the United States on Jan. 30 and 31 for the latest round of trade talks aimed at resolving the dispute between the world’s two largest economies.

In focus was also the country’s economic health, ahead of Monday’s release of preliminary GDP growth figures for the latest quarter and full-year 2018.

China’s statistics bureau on Friday revised down its final 2017 gross domestic product (GDP) growth to 6.8 percent from 6.9 percent, after scaling back initial estimates of the industrial and services sector.

China may set an economic growth target for this year of between 6 percent and 6.5 percent, lower than for 2018, the official China Daily newspaper reported on Friday, citing unnamed sources close to policymakers.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 2,675.44.

The projected lower bound is: 2,514.75.

The projected closing price is: 2,595.10.

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 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 81.3938. 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 58.35. 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 63 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 124.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 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 9 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 36.369 at 2,596.006. Volume was 29% above average (neutral) and Bollinger Bands were 32% narrower than normal.

Open High Low Close Volume___
2,567.7392,598.8842,565.9042,596.00619,076,722,688

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

Moving Averages: 10-period 50-period 200-period
Close: 2,552.50 2,581.53 2,803.28
Volatility: 14 20 24
Volume: 16,442,384,384 15,437,651,968 14,112,687,104

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 7.4% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 3 periods.

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