Shanghai: SSE Composite Index (.SSEC) investors shrug off news that Beijing and Washington resumed trade talks
China stocks traded little changed on Wednesday morning as investors shrugged off news that Beijing and Washington resumed trade talks, while a flood of initial public offerings targeting Shanghai’s new tech board drew attention, diverting funds from the rest of the market.
The CSI300 index rose 0.1%, to 3,797.85, by the end of the morning session, while the Shanghai Composite Index was unchanged at 2,927.68.
The Hang Seng index added 0.3%, to 28,205.41, while the Hong Kong China Enterprises Index gained 0.5%, to 10,701.68.
U.S. and Chinese trade officials held a “constructive” phone conversation on Tuesday, White House economic adviser Larry Kudlow said, marking a new round of talks after the world’s two largest economies agreed to a truce in a year-long trade war.
“We don’t expect a rapid resolution to trade tensions, rather we expect an extended period of confrontation between the US and China – and that means markets will continue to be volatile,” Bin Shi, head of China equities, UBS Asset Management, wrote.
Meanwhile, nine Chinese companies, among the first to float on China’s red-hot Nasdaq-style tech board, are taking subscriptions from investors on Wednesday, diverting funds from the rest of the market.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3,035.15.
The projected lower bound is: 2,787.12.
The projected closing price is: 2,911.13.
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 25 white candles and 25 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 10.1910. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 42.76. 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 42 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 -156.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 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 sell 2 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -12.927 at 2,915.302. Volume was 54% below average (consolidating) and Bollinger Bands were 37% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,987.30 2,932.98 2,804.35
Volatility: 22 27 27
Volume: 18,977,918,976 21,512,118,272 22,470,619,136
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 4.0% above its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 18 periods.