Shanghai: SSE Composite Index (.SSEC) manufacturing weakens as export demand shrinks

Shanghai: SSE Composite Index (.SSEC) manufacturing weakens as export demand shrinks

Shanghai: SSE Composite Index (.SSEC) manufacturing weakens as export demand shrinks

China’s export orders shrank in September as a tariff battle with Washington over technology escalated, adding to downward pressure on the world’s No. 2 economy, two surveys showed Sunday.

The reports add to signs Chinese trade, which had held up despite U.S. President Donald Trump’s tariff hikes, might be weakening. That adds to pressure on an economy that already was forecast to cool due to slowing global consumer demand and lending controls imposed to rein in a debt boom.

The official China Federation of Logistics & Purchasing’s monthly measure of new export orders fell to 48 from August’s 49.4 on a 100-point scale on which numbers below 50 show activity shrinking.

Last week, Trump stepped up pressure by raising tariffs on $200 billion of Chinese goods. Beijing retaliated with penalties on $60 billion of American imports. Both sides already had raised duties on $50 billion of each other’s goods.

The two sides have announced no plans for negotiations. China accused Trump in a report last week of bullying other countries. A deputy commerce minister said negotiations were impossible while Washington “holds a knife” of tariff hikes to Beijing’s throat.

With no settlement in sight, forecasters say the conflict could trim global economic growth by 0.5 percent through 2020.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 2,918.96.

The projected lower bound is: 2,725.69.

The projected closing price is: 2,822.33.

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.

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 82.1061. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 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 61.80. 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 58 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 7 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 29.575 at 2,821.350. Volume was 6% above average (neutral) and Bollinger Bands were 10% narrower than normal.

Open High Low Close Volume___
2,794.2642,821.7552,791.8362,821.35013,429,045,248

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

Moving Averages: 10-period 50-period 200-period
Close: 2,749.20 2,758.91 3,074.68
Volatility: 21 22 21
Volume: 12,248,053,760 12,543,600,640 15,003,001,856

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 8.2% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 5 periods.

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