Shanghai: SSE Composite Index (.SSEC) hurt by fears about the economy and trade tensions

Shanghai: SSE Composite Index (.SSEC) hurt by fears about the economy and trade tensions

Shanghai: SSE Composite Index (.SSEC) hurt by fears about the economy and trade tensions

China is one of the world’s worst performing stock markets this year. The main Shanghai index is down more than 28% since late January, hurt by fears about the economy and trade tensions.

The index rebounded nearly 7% over the course of trading on Friday and Monday following a rare concerted intervention by senior officials to talk up the country’s struggling economy and markets. It ended flat Thursday after recovering from steep losses earlier in the day.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 2,742.37.

The projected upper bound is: 2,727.16.

The projected lower bound is: 2,474.83.

The projected closing price is: 2,600.99.

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 27 white candles and 23 black candles for a net of 4 white 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 66.9482. This is not an overbought or oversold reading. The last signal was a buy 4 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 45.17. 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 4 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 -34. This is not a topping or bottoming area. The last signal was a buy 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 0.504 at 2,603.800. Volume was 24% above average (neutral) and Bollinger Bands were 64% wider than normal.

Open High Low Close Volume___
2,540.9352,606.1012,531.5352,603.80016,203,297,792

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,577.66 2,698.16 3,026.99
Volatility: 39 30 24
Volume: 15,231,084,544 12,384,090,112 15,145,782,272

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 14.0% below its 200-period moving average and is in an downward trend. Volatility is high 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 9 periods.

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