Shanghai: SSE Composite Index (.SSEC) lower-than-expected Chinese inflation data

Shanghai: SSE Composite Index (.SSEC) lower-than-expected Chinese inflation data

Shanghai: SSE Composite Index (.SSEC) lower-than-expected Chinese inflation data

Asia markets mostly slipped on Thursday following lower-than-expected Chinese inflation data while investors digested the conclusion of a three-day trade negotiation between the Beijing and Washington.

Mainland Chinese markets, watched by investors in relation to the ongoing trade war, experienced a turbulent trading day that saw stocks close in negative territory. The Shanghai composite slipped 0.36 percent to close at 2,535.28 while the Shenzhen composite shed 0.265 percent to 1,303.48. The Shenzhen component also fell 0.259 percent to close at around 7,428.61.

Hong Kong’s Hang Seng index was largely flat in its final hour of trade, with shares of Chinese tech giant Tencent gaining 0.31 percent.

The moves came after official Chinese inflation data for December, released at the same time as the market open, came in below expectations.

China’s December consumer inflation (CPI) — a gauge of prices for goods and services — rose 1.9 percent on year. That was lower than economists’ expectations of a 2.1 percent growth, according to a Reuters’ poll. Producer inflation rose 0.9 percent on-year in December, which was lower than the 1.6 percent economists were expecting.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 2,611.29.

The projected upper bound is: 2,618.45.

The projected lower bound is: 2,450.43.

The projected closing price is: 2,534.44.

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 24 white candles and 26 black candles for a net of 2 black 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 77.9968. This is not an overbought or oversold reading. The last signal was a sell 0 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 47.64. 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 57 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 95. This is not a topping or bottoming area. The last signal was a sell 0 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 3 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -9.247 at 2,535.098. Volume was 10% above average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
2,543.8542,551.8262,531.6642,535.09815,987,432,448

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

Moving Averages: 10-period 50-period 200-period
Close: 2,505.88 2,590.85 2,822.80
Volatility: 16 21 24
Volume: 14,538,254,336 15,797,733,376 14,188,992,512

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 10.2% below 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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