Shanghai: SSE Composite Index (.SSEC) investors awaiting developments around Sino-U.S. trade talks
China stocks closed lower on Thursday weighed down by a slump in top consumer shares, even as investors awaited developments around Sino-U.S. trade talks.
The blue-chip CSI300 index fell 0.5% to 3,873.10, while the Shanghai Composite Index lost 0.3% to 3,005.25.
Consumer firms China International Travel Service Corp Ltd slumped 5.5%, while Guangdong Haid Group Co Ltd dived 6.4%. The CSI300 consumer staples index ended down 1.3%.
“There is a lack of safety margin in those leading consumer firms whose valuations have substantially gone up as Beijing encourages domestic consumption to bolster growth,” said Yan Kaiwen, an analyst with China Fortune Securities.
Caution remained as market participants kept an eye on the progress of Sino-U.S. trade talks.
Top representatives from the United States and China are arranging to resume talks next week to try to resolve a year-long trade war between the world’s two largest economies, Trump administration officials said on Wednesday.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.3%, while Japan’s Nikkei index closed up 0.3%.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 3,125.85.
The projected lower bound is: 2,874.03.
The projected closing price is: 2,999.94.
A black body occurred (because prices closed lower 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 24 white candles and 26 black candles for a net of 2 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 69.3824. 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 56.50. 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 38 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 52. 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 27 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -10.014 at 3,005.249. Volume was 37% below average (neutral) and Bollinger Bands were 25% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,005.35 2,952.00 2,799.65
Volatility: 17 27 27
Volume: 21,645,174,784 22,778,994,688 22,356,451,328
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 7.3% above its 200-period moving average and is in an upward trend. Volatility is 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 14 periods.