Shanghai: SSE Composite Index (.SSEC) official data from China showing that the Chinese economy contracted for the second month

Shanghai: SSE Composite Index (.SSEC) official data from China showing that the Chinese economy contracted for the second month

Shanghai: SSE Composite Index (.SSEC) official data from China showing that the Chinese economy contracted for the second month

Major stocks in Asia closed mixed on Thursday on the back of official data from China showing that the Chinese economy contracted for the second month in a row in January.

The mainland Chinese markets ended their trading day mixed. The Shanghai composite gained around 0.35 percent to 2,584.57 and the Shenzhen component rose 0.117 percent to 7,479.22. The Shenzhen composite, however, slipped 0.698 percent to 1,274.74.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 2,655.40.

The projected lower bound is: 2,511.29.

The projected closing price is: 2,583.35.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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 35.2857. 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 53.31. 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 72 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 25. This is not a topping or bottoming area. The last signal was a sell 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 buy 18 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 8.997 at 2,584.573. Volume was 1% above average (neutral) and Bollinger Bands were 45% narrower than normal.

Open High Low Close Volume___
2,581.3322,606.6282,571.5792,584.57315,430,386,688

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

Moving Averages: 10-period 50-period 200-period
Close: 2,591.20 2,570.88 2,777.77
Volatility: 13 18 24
Volume: 15,289,623,552 14,369,148,928 14,057,255,936

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 7.0% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 12 periods.

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