Shanghai: SSE Composite Index (.SSEC) Investors are cautious ahead of Trump-Xi meet

Shanghai: SSE Composite Index (.SSEC) Investors are cautious ahead of Trump-Xi meet

Shanghai: SSE Composite Index (.SSEC) Investors are cautious ahead of Trump-Xi meet

Chinese stocks were the world’s worst performers Tuesday, falling the most this month, and Hong Kong’s November rebound came unstuck.

The CSI 300 Index slid 2.3 percent, with technology shares leading declines after another sell-off in the U.S. That also dragged on Hong Kong’s Hang Seng Index, which lost 2 percent as all but two of its 50 members declined. Internet giant Tencent Holdings Ltd. retreated 3.3 percent.

Investors in China have been stung by a myriad of factors this year, including a trade war with the U.S. that has helped send the equity benchmark down 20 percent. Uncertainty continues to swirl around the dispute and whether any progress will be made when presidents Xi Jinping and Donald Trump meet on the sidelines of the G20 in Buenos Aires.

Among individual movers, surveillance-product maker Hangzhou Hikvision Digital Technology Co. slid 8.7 percent following news the U.S. may tighten controls on the export of Artificial Intelligence tools. Hong Kong-listed luxury watchmakers including Chow Tai Fook Jewellery Group Ltd. fell after Bank of America Corp. warned of weakening demand from Chinese consumers.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,774.40.

The projected lower bound is: 2,514.31.

The projected closing price is: 2,644.36.

Candlesticks

A black body occurred (because prices closed lower 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 74.1824. This is not an overbought or oversold reading. The last signal was a sell 0 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 50.01. 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 22 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 44. 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 buy 18 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -57.657 at 2,645.854. Volume was 52% above average (neutral) and Bollinger Bands were 29% narrower than normal.

Open High Low Close Volume___
2,684.2872,690.8302,643.3592,645.85421,589,131,264

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

Moving Averages: 10-period 50-period 200-period
Close: 2,649.01 2,659.01 2,957.89
Volatility: 22 31 25
Volume: 20,456,486,912 15,231,167,488 15,035,500,544

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 10.5% 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 3 periods.

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