Shanghai: SSE Composite Index (.SSEC) investors awaited the White House’s decision

Shanghai: SSE Composite Index (.SSEC) investors awaited the White House’s decision

Shanghai: SSE Composite Index (.SSEC) investors awaited the White House’s decision

China and Hong Kong stocks both retreated on Thursday, as investors awaited the White House’s decision on whether to slap an additional US$200 billion of tariffs on imports from the Asian nation.

The Shanghai Composite Index fell 0.5 per cent at the close and Hong Kong’s Hang Seng Index shed 1 per cent. Trading was light as traders stayed on the sidelines, keeping a close watch on the latest development on the trade war between the world’s two largest economies. The daily trading volumes on the Shanghai bourse were about a fifth below the 30-day average and those in Hong Kong were 2.6 per cent lower, according to Bloomberg data.

Thursday was the last day for the American public to provide feedback on the US$200 billion tariffs the Trump administration has proposed on Chinese imports. Data seems to be adding pressure on Washington to follow through the proposal as the US’ trade deficit with China widened to a record US$36.8 billion in July and its overall gap with the rest of the world increased to US$50.1 billion, according to the latest data from the Commerce Department.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,794.43.

The projected lower bound is: 2,584.94.

The projected closing price is: 2,689.69.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 31.3165. This is not an overbought or oversold reading. The last signal was a sell 5 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 40.20. 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 43 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 -101.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 12 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 0 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -12.744 at 2,691.593. Volume was 24% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
2,697.5782,719.4062,683.7442,691.5939,901,783,040

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

Moving Averages: 10-period 50-period 200-period
Close: 2,738.78 2,779.71 3,121.61
Volatility: 18 24 21
Volume: 10,832,483,328 12,822,799,360 15,466,525,696

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 13.8% below its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 15 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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