Shanghai: SSE Composite Index (.SSEC) May Take Further Damage
The China stock market headed south again on Wednesday, one day after it had ended the two-day slide in which it had retreated more than 40 points or 1.5 percent. The Shanghai Composite Index now rests just above the 2,810-point plateau and the losses may accelerate on Thursday.
The global forecast for the Asian markets is broadly negative as the damage caused by the coronavirus to the global economy becomes apparent. The European and U.S. markets were down and the Asian bourses figure to follow suit.
The SCI finished modestly lower on Wednesday following losses from the properties and oil and insurance companies, while the financials came in mixed.
For the day, the index lost 16.11 points or 0.57 percent to finish at 2,811.17 after trading between 2,808.70 and 2,829.75, The Shenzhen Composite Index fell 9.28 points or 0.53 percent to end at 1,736.13.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 2,945.20.
The projected lower bound is: 2,684.85.
The projected closing price is: 2,815.03.
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 29 white candles and 21 black candles for a net of 8 white candles.
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 74.2636. This is not an overbought or oversold reading. The last signal was a sell 3 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 49.60. 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 50 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 56. This is not a topping or bottoming area. The last signal was a sell 4 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 12 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 3.911 at 2,815.085. Volume was 39% below average (neutral) and Bollinger Bands were 37% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,803.99 2,874.44 2,930.13
Volatility: 20 29 23
Volume: 21,497,958,400 30,007,642,112 20,970,084,352
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 3.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 22 periods.