Shanghai: SSE Composite Index (.SSEC) new data underscored concerns about weaker economic growth

Shanghai: SSE Composite Index (.SSEC) new data underscored concerns about weaker economic growth

Shanghai: SSE Composite Index (.SSEC) new data underscored concerns about weaker economic growth

China’s stock markets ended weaker on Wednesday as new data underscored concerns about weaker economic growth and as energy producers slipped on plunging oil prices.

At the close, the Shanghai Composite index was down 0.9 percent at 2,632.24 points.

The blue-chip CSI300 index ended 1 percent lower, with its financial sector sub-index closing down by 1.08 percent, and the healthcare sub-index ending 0.99 percent weaker.

Retail sales growth in China slowed in October to 8.6 percent, its weakest pace since May, adding to worries that slower domestic consumption could put the brakes on growth even as Beijing pushes policy measures to support the real economy. But those measures helped China’s industrial output and fixed-asset investment to rise more than expected in the first 10 months of 2018.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,756.30.

The projected lower bound is: 2,502.36.

The projected closing price is: 2,629.33.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 59.4679. This is not an overbought or oversold reading. The last signal was a sell 4 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 49.50. 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 18 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 43. This is not a topping or bottoming area. The last signal was a sell 6 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 14 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -22.637 at 2,632.242. Volume was 73% above average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
2,648.3092,658.3072,627.9572,632.24223,844,935,680

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

Moving Averages: 10-period 50-period 200-period
Close: 2,640.10 2,664.14 2,973.95
Volatility: 22 31 25
Volume: 19,314,073,600 14,272,344,064 15,059,753,984

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 11.5% 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 0 periods.

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