Shanghai: SSE Composite Index (.SSEC) markets in China tread water
Asian stock markets started strong Tuesday, but gains faded as the day wore on.
The initial push built on Monday’s global gains, which saw the S&P 500 and Nasdaq log record closes after President Donald Trump announced a pending trade deal with Mexico, easing global trade-war worries.
Japan’s Nikkei NIK, +0.06% briefly topped 23,000 for the first time since June 12, before running out of steam. The index ended up just 0.1% at 22,813.47. Exporters advanced; Mitsui OSK Lines 9104, +2.13% jumped 2.1%, while Nippon Steel 5401, +0.60% rose 0.6% and Toyota 7203, +0.86% gained 0.8%. Analysts warned that initial enthusiasm for the U.S.-Mexico deal is unlikely to last since tougher negotiations likely loom ahead with China and other trading partners.
Hong Kong stocks also failed to hold much of their early gains, with the Hang Seng HSI, +0.28% ending up 0.3% at 28,351.62. Tech shares were among the best performers, with heavyweight Tencent 0700, +1.22% advancing 1.3% and Sunny Optical 2382, +2.24% rising 2.2%. Energy stocks were also strong, with coal company Shenhua 1088, +2.70% rebounding 2.7%.
In China, the Shanghai Composite SHCOMP, -0.10% and Shenzhen Composite 399106, +0.07% were little changed after Monday’s 2%-plus jump after the People’s Bank of China moved to shore up the yuan. The Shanghai index slipped 0.1% to 2,777.98 and the Shenzhen index nudged up 0.1%.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 2,880.19.
The projected lower bound is: 2,670.58.
The projected closing price is: 2,775.38.
A black body occurred (because prices closed lower 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 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 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 87.8915. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 50.82. 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 36 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 82. This is not a topping or bottoming area. The last signal was a buy 5 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 buy 2 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -2.918 at 2,777.981. Volume was 11% below average (neutral) and Bollinger Bands were 31% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,725.73 2,797.43 3,145.96
Volatility: 22 24 20
Volume: 11,173,953,536 13,201,233,920 15,748,210,688
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 11.7% below its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 8 periods.