Shanghai: SSE Composite Index (.SSEC) lingering worries about the economy and caution over persisting US political uncertainties

Shanghai: SSE Composite Index (.SSEC) lingering worries about the economy and caution over persisting US political uncertainties

Shanghai: SSE Composite Index (.SSEC) lingering worries about the economy and caution over persisting US political uncertainties

China stocks slipped on Wednesday amid lingering worries about the economy and caution over persisting US political uncertainties, as a federal government shutdown and President Donald Trump’s hostile stance towards the Federal Reserve unnerved investors. 

The blue-chip CSI300 index fell 0.5 per cent, to 3,002.03, while the Shanghai Composite Index lost 0.3 per cent to 2,498.29 points.

The largest per centage gainers in the main Shanghai Composite index were shares of Changshu Fengfan Power Equipment Co Ltd , up 10.14 per cent, followed by those of Guodian Nanjing Automation Co Ltd, gaining 10.08 per cent and Holsin Engineering Consulting Group Co Ltd’s stock, up by 10.02 per cent.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 2,651.36.

The projected upper bound is: 2,603.43.

The projected lower bound is: 2,390.62.

The projected closing price is: 2,497.03.

Candlesticks

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

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 34.1641. This is not an overbought or oversold reading. The last signal was a buy 2 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 34.88. 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 48 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 -111.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 20 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 sell 8 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -6.525 at 2,498.294. Volume was 23% below average (neutral) and Bollinger Bands were 6% narrower than normal.

Open High Low Close Volume___
2,501.1202,513.8262,492.0762,498.29410,879,963,136

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,553.46 2,603.69 2,858.17
Volatility: 15 26 24
Volume: 12,217,868,288 15,997,557,760 14,244,373,504

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 12.6% below its 200-period moving average and is in an downward trend. Volatility is low 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 11 periods.

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