Shanghai: SSE Composite Index (.SSEC) May Test Resistance At 3,000 Points

Shanghai: SSE Composite Index (.SSEC) May Test Resistance At 3,000 Points

Shanghai: SSE Composite Index (.SSEC) May Test Resistance At 3,000 Points

The China stock market ticked higher again on Thursday, one day after it had halted the three-day winning streak in which it had gathered more than 60 points or 2 percent. The Shanghai Composite Index remains just beneath the 2,980-point plateau and it’s got another green light for Friday’s trade.

The global forecast for the Asian markets is upbeat on growing optimism for a trade deal between the United States and China. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The SCI finished barely higher on Thursday following mixed performances from the financials, properties and oil companies.

For the day, the index rose 0.12 points to finish at 2,978.71 after trading between 2,969.12 and 2,988.96. The Shenzhen Composite Index gained 10.54 points or 0.64 percent to end at 1,651.77.

China will release October data for new yuan loans later today. Forecasts suggest that new loans were worth 800 billion last month, down from 1,690 billion in September.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,049.86.

The projected lower bound is: 2,924.23.

The projected closing price is: 2,987.04.

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 28 white candles and 22 black candles for a net of 6 white 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 63.4538. This is not an overbought or oversold reading. The last signal was a sell 7 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 55.85. 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 sell 33 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 102.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 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 4 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 6.297 at 2,985.011. Volume was 55% below average (consolidating) and Bollinger Bands were 52% narrower than normal.

Open     High      Low     Close     Volume___
2,993.9772,998.7602,978.5522,985.0117,600,975,360
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,967.02 2,959.13 2,930.43
Volatility: 11 14 23
Volume: 15,454,844,928 17,120,470,016 23,108,153,344

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 1.9% above 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 22 periods.

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