Shanghai: SSE Composite Index (.SSEC) investors cheer signs of progress in the ongoing US-China trade talks

Shanghai: SSE Composite Index (.SSEC) investors cheer signs of progress in the ongoing US-China trade talks

Shanghai: SSE Composite Index (.SSEC) investors cheer signs of progress in the ongoing US-China trade talks

China stocks rose on Friday to end the four-session week higher, as investors cheered signs of progress in the ongoing US-China trade talks.

The blue-chip CSI300 index rose 1.0 per cent, to 3,911.73, while the Shanghai Composite Index closed up 0.9 per cent at 2,973.66.

For the week, CSI300 gained 2.5 per cent, while SSEC was up 2.4 per cent.

US and Chinese negotiators on Thursday wrapped up a first day of trade talks in more than two months as business groups expressed optimism the two sides might be able to ease a 15-month trade war and delay a US tariff hike scheduled for next week.

US President Donald Trump said “we had a very, very good negotiation with China”, while a White House official said the talks had gone “probably better than expected”.

Sectors rallied across the board on Friday, with financials and energy firms leading the gains.

The market rally is ongoing given low valuations overall, though any further upward trend would depend a lot on the rolling out of more-than-expected easing policies by domestic and overseas countries, Shayne Heffernan, CEO and Founder of Heffx wrote in report.

The largest percentage gainers in the main Shanghai Composite index were Xinjiang Youhao Group Co Ltd, up 10.07 per cent, followed by China Hi-Tech Group Co Ltd, up 10.06 per cent and HY Energy Group Co Ltd up 10.03 per cent.

The largest percentage losses in the Shanghai index were Panda Financial Holding Corp Ltd down 9.96 per cent, Fujian Raynen Technology Co Ltd down 7.85 per cent and Zhe Jiang Taihua New Material Co Ltd down 7.68 per cent.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,046.50.

The projected lower bound is: 2,902.27.

The projected closing price is: 2,974.38.

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 30 white candles and 20 black candles for a net of 10 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 76.1183. 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 55.34. 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 13 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 16. This is not a topping or bottoming area. The last signal was a buy 1 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 11 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 25.945 at 2,973.656. Volume was 11% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open     High      Low     Close     Volume___
2,954.8192,980.7882,943.0142,973.65616,120,374,272
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,944.41 2,914.67 2,887.44
Volatility: 14 16 23
Volume: 14,904,739,840 17,499,009,024 22,958,792,704

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 3.0% above 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.

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