Shanghai: SSE Composite Index (.SSEC) Investors watch for market reaction to overnight developments on U.S.-China trade

Shanghai: SSE Composite Index (.SSEC) Investors watch for market reaction to overnight developments on U.S.-China trade

Shanghai: SSE Composite Index (.SSEC) Investors watch for market reaction to overnight developments on U.S.-China trade

Shares in Asia Pacific were mixed in Thursday morning trade amid reports of a potential delay in the signing of a U.S.-China trade deal.

Mainland Chinese stocks were mixed in early trade, with the Shanghai composite down around 0.2% while the Shenzhen component and Shenzhen composite both rose around 0.1% each.

Hong Kong’s Hang Seng index slipped 0.4% as shares of Chinese tech giant Tencent dropped 1.62%.

US-China trade watch

Investors watched for market reaction to overnight developments on U.S.-China trade, following reports that U.S. President Donald Trump and Chinese President Xi Jinping may not meet to sign a trade deal until December.

The meeting between Trump and Xi could be pushed back as the two sides still need to decide on the terms and a venue, a senior administration official told CNBC. Trump is scheduled to be in London for a gathering of NATO leaders on Dec. 3 – 4, and a potential signing could happen nearby before or after that visit, people close to the talks told CNBC. Reuters first reported the meeting postponement.

Those developments came after the Asia-Pacific Economic Cooperation summit in Chile, originally scheduled for later this month, was canceled due to protests in the country. Trump and Xi were scheduled to meet at the summit to discuss and potentially sign a “phase one” deal.

“Headlines suggesting that markets are worried about reports of a likely delay in US-China “Phase 1″ deal to December rather than this month lack nuance, if not miss the point,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a note.

“It is not the timing (small delay) that is worrying,” Varathan said. “Instead, (it is) more negotiation tensions requiring more time that an inadvertent delay may reveal and the ensuring final/finer details of an interim deal that really matter.”

“The ability to progress beyond the relatively low-hanging fruits of the ‘Phase 1’ deal will be threatened to a greater degree by pre-existing tensions at this stage, than a mere timing delay due to logistical issues,” he said.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,043.36.

The projected lower bound is: 2,917.78.

The projected closing price is: 2,980.57.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 78.2327. This is not an overbought or oversold reading. The last signal was a sell 5 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 54.48. 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 31 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 117.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 16 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 2 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -12.967 at 2,978.595. Volume was 2% below average (neutral) and Bollinger Bands were 54% narrower than normal.

Open     High      Low     Close     Volume___
2,992.0402,995.5632,969.7242,978.59516,526,354,432
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,960.23 2,955.13 2,926.01
Volatility: 12 14 23
Volume: 15,959,230,464 17,310,996,480 23,177,551,872

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 1.8% 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 20 periods.

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