Shanghai: SSE Composite Index (.SSEC) Investors enduring optimism over Sino-American trade talks and hopes of an interest-rate cut in the U.S

Shanghai: SSE Composite Index (.SSEC) Investors enduring optimism over Sino-American trade talks and hopes of an interest-rate cut in the U.S

Shanghai: SSE Composite Index (.SSEC) Investors enduring optimism over Sino-American trade talks and hopes of an interest-rate cut in the U.S

Asian stocks outside of Japan extended gains on Tuesday amid enduring optimism over Sino-American trade talks and hopes of an interest-rate cut in the U.S.

The Nikkei Asia300 Index added 0.3% to 1,303.66. Gains in Asia came after indexes on Wall Street rose overnight amid growing hopes of progress in U.S.-China trade relations. President Donald Trump on Monday said part of a trade deal with China is likely to be signed “ahead of schedule.”

“A U.S.-China trade deal, even an interim one, remains the critical macro-economic event for the year,” Jeffrey Halley, a senior market analyst for Asia Pacific at OANDA, wrote in a note.

Risk appetite was also buoyant ahead of the U.S. Federal Reserve’s policy review, where the central bank is widely expected to cut interest rates for a third time this year. The probability of a rate cut at the Fed’s meeting that starts on Tuesday is at 95%, according to CME’s FedWatch tool.

“The odds of a dovish or hawkish rate cut are at best 50/50,” Halley said.

Still, equity benchmarks in China and Hong Kong closed lower amid lingering worries over an economic slowdown. The Hang Seng Index slipped 0.4%, while the Shanghai Composite Index lost 0.9%.

Hong Kong’s advance gross domestic product data for the third quarter, due on Thursday, is expected to show that the city has entered a technical recession. Meanwhile, data released earlier this month showed China’s economy expanded 6% in the third quarter, the slowest pace in at least 27 years.

Taiwan Semiconductor Manufacturing rose 1.4% in Taipei after the company and smaller contract chipmaker GlobalFoundries resolved a patent dispute, with both the companies agreeing to cross-license each other’s existing semiconductor patents and those filed over the next 10 years.

Battery maker Samsung SDI fell 0.7% in Seoul after reporting a 31% on-year decrease in third-quarter operating profit.

Chinese telecommunications equipment maker ZTE climbed 3.5% in Hong Kong after reporting a near fivefold increase in third-quarter profit. The company also said it expects to report a profit of 4.3 billion yuan ($609.2 million) to 5.3 billion yuan for the full year, compared with a loss in 2018.

WH Group jumped 5.8% after the pork-producer reported an 8.5% on-year increase in net profit for the nine months ended Sept. 30 on a 3.7% rise in revenue.

Bharti Airtel slid 3.4% after saying it will delay releasing September-quarter earnings till Nov. 14 instead of on Tuesday. The delay comes days after India’s Supreme Court rejected telecommunication companies’ definition of adjusted gross revenue (AGR), a move that will require wireless carriers pay 920 billion Indian rupees ($13 billion) in overdue levies and interest to the Department of Telecom.

Tata Motors jumped 16.6% in Mumbai as markets reopened after a long weekend. The automaker had on Friday reported a narrower-than-expected loss for the September quarter.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 2,943.59.

The projected upper bound is: 3,022.54.

The projected lower bound is: 2,891.38.

The projected closing price is: 2,956.96.

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 29 white candles and 21 black candles for a net of 8 white 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 81.6370. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 49.72. 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 25 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 1. This is not a topping or bottoming area. The last signal was a sell 10 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 6 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -25.874 at 2,954.176. Volume was 4% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open     High      Low     Close     Volume___
2,979.0372,979.0372,954.1762,954.17616,611,005,440
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,955.99 2,939.86 2,912.14
Volatility: 12 14 23
Volume: 13,994,164,224 17,286,653,952 23,110,139,904

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 1.4% 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 14 periods.

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