Shanghai: SSE Composite Index (.SSEC) investors shrugged off the country’s slowest rate of annual economic growth in 28 years

Shanghai: SSE Composite Index (.SSEC) investors shrugged off the country’s slowest rate of annual economic growth in 28 years

Shanghai: SSE Composite Index (.SSEC) investors shrugged off the country’s slowest rate of annual economic growth in 28 years

China shares ended higher on Monday as investors shrugged off the country’s slowest rate of annual economic growth in 28 years amid expectations that authorities will pursue more stimulus to support growth. 

At the close, the Shanghai Composite index was up 0.56 per cent at 2,610.51. 

The blue-chip CSI300 index was up 0.55 per cent, with its financial sector sub-index higher by 0.23 per cent and the healthcare sub-index up 0.38 per cent. 

Overall, the bias in prices is: Sideways.

The projected upper bound is: 2,690.58.

The projected lower bound is: 2,529.43.

The projected closing price is: 2,610.01.

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 26 white candles and 24 black candles for a net of 2 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more 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 83.1295. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 60.61. 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 64 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 153.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 buy 10 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 14.504 at 2,610.510. Volume was 10% above average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
2,599.0582,618.9802,599.0582,610.51016,342,511,616

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,560.24 2,581.03 2,800.73
Volatility: 14 20 24
Volume: 16,303,586,304 15,445,231,616 14,112,649,216

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
SSE COMPOSITE is currently 6.8% below 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 4 periods.

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