Shanghai: SSE Composite Index (.SSEC) Investors remain cautious awaiting new developments between Beijing and Washington amid the ongoing trade tensions
Stocks in Asia mostly declined in Wednesday afternoon trade following overnight losses on Wall Street that saw the Dow Jones Industrial Average fall more than 200 points.
In Japan, the Nikkei 225 dropped 1.21% in afternoon trade to close at 21,003.37, and the Topix declined 0.94% to 1,536.41. Over in South Korea, the Kospi was down 1.25% to close at 2,023.32, with shares of Samsung Electronics paring some losses to fall 1.76%.
The ASX 200 in Australia shed 0.69% to 6,440.00 as almost all the sectors traded lower.
Mainland Chinese stocks mostly declined by the close, with the Shanghai composite slipping 0.16% to close at 2,914.70, and the Shenzhen component falling 0.28% to 9,010.36. The Shenzhen composite was flat at 1,541.66.
Hong Kong’s Hang Seng index slipped 0.48%, with Hong Kong-listed shares of HSBC and China Construction Bank seeing declines.
Investors remained cautious, awaiting new developments between Beijing and Washington amid the ongoing trade tensions.
U.S. President Donald Trump said Monday the U.S. was “not ready” to strike a deal with China, before adding he expected one in the future. He also said tariffs on Chinese imports could go up “substantially.”
“I think at this stage, the U.S. feels very comfortable because they don’t see growth really coming off,” Adrian Zuercher, head of asset allocation Asia-Pacific at UBS Chief Investment Office Wealth Management, told CNBC’s “Squawk Box” on Wednesday. “We think actually growth is actually slowing and underneath there’s some cracks, the same on the China side.”
For its part, China appeared to have made a veiled threat concerning rare earth minerals, a crucial component to the U.S. technology industry.
Chinese President Xi Jinping recently visited rare earth mining and processing facilities, adding to speculation that Beijing could make the minerals more expensive or unavailable if the trade war continues to expand.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 2,954.64.
The projected upper bound is: 3,053.15.
The projected lower bound is: 2,773.21.
The projected closing price is: 2,913.18.
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 27 white candles and 23 black candles for a net of 4 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 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 78.0513. This is not an overbought or oversold reading. The last signal was a sell 8 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 44.59. 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 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 58. This is not a topping or bottoming area. The last signal was a buy 2 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 2 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 4.786 at 2,914.696. Volume was 34% below average (neutral) and Bollinger Bands were 30% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,892.88 3,058.45 2,776.36
Volatility: 21 29 28
Volume: 21,191,098,368 30,934,392,832 21,253,847,040
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 5.0% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .SSEC (mildly bearish). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 21 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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