Shanghai: SSE Composite Index (.SSEC) market has seen sharp corrections this year

Shanghai: SSE Composite Index (.SSEC) market has seen sharp corrections this year

Shanghai: SSE Composite Index (.SSEC) market has seen sharp corrections this year

Listed firms on China’s A-share market have conducted a surging number of share repurchases, a scheme that analysts said would boost market sentiment.

By Tuesday, 482 listed firms have repurchased their shares valued at nearly 24 billion yuan (3.5 billion U.S. dollars) in total via 655 operations, according to information service provider Wind.

The numbers represented sharp increases from 2017, when public companies on the A-share market conducted 565 share buyback operations, with shares worth 9.2 billion yuan repurchased.

China’s A-share market has seen sharp corrections this year, with the benchmark Shanghai Composite Index losing about 20 percent compared with the beginning of the year.

The buyback scheme would support the value of stocks and boost overall market sentiment, according to Yang Delong, chief economist of First Seafront Fund.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 2,760.12.

The projected lower bound is: 2,564.60.

The projected closing price is: 2,662.36.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 12.8833. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 37.48. 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 46 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 -154.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 3 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -4.685 at 2,664.800. Volume was 23% below average (neutral) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
2,668.4872,680.5732,652.7042,664.8009,986,594,816

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

Moving Averages: 10-period 50-period 200-period
Close: 2,713.61 2,772.25 3,110.92
Volatility: 15 22 21
Volume: 10,421,685,248 12,634,285,056 15,330,666,496

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 14.3% 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 18 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH