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Shanghai: SSE Composite Index (.SSEC) investors welcome an agreement between Donald Trump and Xi Jinping to resume trade talks

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Shanghai: SSE Composite Index (.SSEC) investors welcome an agreement between Donald Trump and Xi Jinping to resume trade talks

Stocks surged in China today as investors welcomed an agreement between Donald Trump and Xi Jinping to resume trade talks.

The benchmark Shanghai Composite Index rallied 2.22 per cent, or 66.02 points, to 3,044.90, while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, jumped 3.46 per cent, or 54.13 points, to 1,616.55.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,166.85.

The projected lower bound is: 2,914.61.

The projected closing price is: 3,040.73.

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 25 white candles and 25 black 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.

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 77.4846. This is not an overbought or oversold reading. The last signal was a sell 3 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 63.77. 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 35 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 125.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 24 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 66.024 at 3,044.903. Volume was 19% below average (neutral) and Bollinger Bands were 27% narrower than normal.

Open High Low Close Volume___
3,024.6243,045.3673,014.6873,044.90325,084,043,264

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

Moving Averages: 10-period     50-period     200-period
Close: 2,978.41 2,966.40 2,795.25
Volatility: 19 27 27
Volume: 22,127,593,472 23,533,090,816 22,204,850,176

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 8.9% above its 200-period moving average and is in an upward trend. Volatility is 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 11 periods.

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