Shanghai: SSE Composite Index (.SSEC) investors bet next week’s economic policy meeting will signal further easing
Chinese stocks jumped as investors bet next week’s economic policy meeting will signal further easing, spurring gains in property developers to infrastructure companies. Bonds tumbled the most in almost five months.
The Shanghai Composite Index advanced 1.2 percent at the close. A gauge of property stocks rose the most in seven weeks after China’s top economic planning body pledged to support bond issuance by highly rated companies, adding to hopes for policy easing. Anhui Conch Cement Co. was among top performers on an index of Hong Kong-traded Chinese companies. The yield on Chinese 10-year bonds headed for its biggest jump since July amid bets the nation will step up its support for the economy.
The mood was helped by signs of cooling in the U.S.-China trade tensions that have weighed heavily on stocks this year. The Shanghai benchmark has slumped 26 percent since late January. With a slowing economy also hurting sentiment, investors expect Chinese authorities to lean toward looser monetary policy to help growth, which has helped propel a rally in government bonds.
Overall, the bias in prices is: Downwards
By the way, prices are vulnerable to a correction towards 2,693.79.
The projected upper bound is: 2,760.54.
The projected lower bound is: 2,501.25.
The projected closing price is: 2,630.89.
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 25 white candles and 25 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 48.0938. This is not an overbought or oversold reading. The last signal was a buy 1 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 52.09. 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 39 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 57. This is not a topping or bottoming area. The last signal was a buy 11 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 0 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 31.896 at 2,634.049. Volume was 5% above average (neutral) and Bollinger Bands were 27% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,618.47 2,622.70 2,891.24
Volatility: 21 31 24
Volume: 13,887,477,760 16,353,923,072 14,433,101,824
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 8.9% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 2 periods.