Shanghai: SSE Composite Index (.SSEC) positive attitude toward the A-shares market
China stocks slipped on Friday but posted a weekly gain, thanks to China’s recent supportive policies and measures that aim to bolster the stock market and the real economy.
Industry analysts generally hold a positive attitude toward the A-shares market, believing that the incentives will restore confidence in the market and attract liquidity in the long run.
The blue-chip CSI300 index fell 0.65 percent to 3,173.64 points, while the Shanghai Composite Index ended down 0.19 percent at 2,598.85 points.
For the week, the CSI300 index gained 1.2 percent.
However, despite the rebound last week, industry analysts predicted that the stock market would experience some fluctuations in the near term, since it would take some time for the government to restore market confidence.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 2,741.42.
The projected upper bound is: 2,719.03.
The projected lower bound is: 2,470.84.
The projected closing price is: 2,594.94.
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 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 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 63.0587. This is not an overbought or oversold reading. The last signal was a buy 5 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 44.73. 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 5 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 4. 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 1 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -4.953 at 2,598.847. Volume was 21% above average (neutral) and Bollinger Bands were 62% wider 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: 2,576.86 2,694.25 3,023.60
Volatility: 38 30 24
Volume: 15,119,629,312 12,398,642,176 15,143,912,448
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 14.0% 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 10 periods.