Shanghai: SSE Composite Index (.SSEC) is down nearly 16 percent year-to-date
Beijing’s recent retaliation failed to spur any whiff of risk aversion when it came to U.S. stocks, unlike previous rounds of tariff threats between the nations. While China’s Shanghai Composite Index is down nearly 16 percent year-to-date, helping spur its policy makers to cushion their economy, there’s little market-driven incentive for Trump to take action.
The Shanghai Composite Index rose 2.7 per cent, or 74.22 points, to 2,779.37, marking the biggest daily gain since May 2016. The CSI 300 – which tracks the large caps listed in Shanghai and Shenzhen – increased 2.9 per cent, or 95.60 points, from Monday’s 22-month low, to 3,368.87.
Market sentiments continued to stabilise after China’s central bank data showed that the nation’s foreign reserves rose for a second month to US$3.118 trillion in July, exceeding a US$3.107 trillion forecast.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 2,886.48.
The projected lower bound is: 2,658.04.
The projected closing price is: 2,772.26.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.
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 19.5927. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 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 43.36. 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 21 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 -92. This is not a topping or bottoming area. The last signal was a buy 0 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 up 74.218 at 2,779.374. Volume was 7% above average (neutral) and Bollinger Bands were 7% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,822.24 2,893.99 3,194.25
Volatility: 24 25 20
Volume: 14,832,159,744 13,668,831,232 16,036,915,200
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 13.0% below its 200-period moving average and is in an upward trend. Volatility is high 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 10 periods.