Shanghai: SSE Composite Index (.SSEC) index is above its 50-day moving average and above its 200-day moving average

Shanghai: SSE Composite Index (.SSEC) index is above its 50-day moving average and above its 200-day moving average

Shanghai: SSE Composite Index (.SSEC) index is above its 50-day moving average and above its 200-day moving average

Chinese stocks were little changed on Wednesday ahead of the Federal Reserve’s interest rate decision later in the day and on uncertainty surrounding Sino-US trade negotiations.

The Shanghai Composite index was flat at 3,090.64 points. The blue-chip index was also unchanged. CSI300’s financial sector sub-index rose 0.7 per cent, the consumer staples sector slipped 0.2 per cent, while the healthcare shares slid 0.3 per cent. The smaller Shenzhen index fell 0.2 per cent and the start-up board ChiNext Composite index declined 1.2 per cent.

The US Federal Reserve is due to announce its interest rate decision later on Wednesday. The central bank will remain patient for a little longer than thought just last month, waiting until the third quarter before raising rates once more, and then stay on the sidelines, a Reuters poll of economists showed.

The Shanghai stock index is above its 50-day moving average and above its 200-day moving average. Around the region, MSCI’s Asia ex-Japan stock index eased 0.2 per cent, while Japan’s Nikkei index closed up 0.2 per cent.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 2,821.95.

The projected upper bound is: 3,222.85.

The projected lower bound is: 2,983.44.

The projected closing price is: 3,103.15.

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 34 white candles and 16 black candles for a net of 18 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 89.1438. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 66.76. 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 8 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 78. This is not a topping or bottoming area. The last signal was a sell 0 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 sell 5 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -0.335 at 3,090.640. Volume was 61% above average (neutral) and Bollinger Bands were 54% wider than normal.

Open High Low Close Volume___
3,084.1703,102.5203,053.4523,090.64035,855,749,120

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

Moving Averages: 10-period 50-period 200-period
Close: 3,048.10 2,763.42 2,744.66
Volatility: 36 26 26
Volume: 43,738,849,280 27,843,973,120 17,365,893,120

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 12.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .SSEC (mildly bullish). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 41 periods.

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