Shanghai: SSE Composite Index (.SSEC) howing signs of decoupling from US counterparts
Stock markets in mainland China and Hong Kong reversed earlier losses to close higher on Wednesday, shrugging off an overnight rout in US shares.
They bucked declines elsewhere in Asia that took their cues from a sell-off in the US, as traders re-assessed the strength of the world’s second-largest economy after a raft of measures to bolster growth.
The Shanghai Composite Index gained 0.2 per cent and Hong Kong’s Hang Seng Index added 0.5 per cent, as both benchmark gauges reversed intraday losses of at least 1 per cent.
Chinese equities have been decoupling from US stocks since mid-October. The 30-day correlation between the Shanghai Composite and the Standard and Poor’s 500 Index was at 0.22, near the lowest level in almost three months, according to Bloomberg data.
The Shanghai Composite added 5.66 points to 2,651.51 on Wednesday, paring its loss in 2018 to 20 per cent. The Hang Seng Index rose 131.13 points to 25,971.47, erasing an intraday decline of as much as 1.3 per cent. The Hang Seng China Enterprises Index gained 0.2 per cent.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 2,778.92.
The projected lower bound is: 2,520.13.
The projected closing price is: 2,649.52.
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 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 58.9974. This is not an overbought or oversold reading. The last signal was a sell 1 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 50.72. 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 23 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 -37. This is not a topping or bottoming area. The last signal was a sell 1 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 19 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 5.651 at 2,651.505. Volume was 28% above average (neutral) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,650.03 2,657.03 2,953.41
Volatility: 21 31 25
Volume: 20,550,430,720 15,378,339,840 15,007,446,016
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 10.2% 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 4 periods.