Shanghai: SSE Composite Index (.SSEC) – Profit Taking Drives China Stock Markets to Lower Close After Early Rise

Shanghai: SSE Composite Index (.SSEC) – Profit Taking Drives China Stock Markets to Lower Close After Early Rise

Shanghai: SSE Composite Index (.SSEC) – Profit Taking Drives China Stock Markets to Lower Close After Early Rise

Investors cashed in their chips in the afternoon following Chinese stock markets’ buoyant opening after yesterday’s rise in the US, thus undermining the day’s earlier gains and drawing the overall market down as the curtain fell.

The Shanghai Composite Index closed at 2968.52, down 0.94 percent, while the Shenzhen Component Index fell 1.78 percent to 11,200.05. The ChiNext Price Index, which tracks growth enterprises listed in Shenzhen, dropped 2.2 percent to 2,101.46.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 2,970.91.

The projected upper bound is: 3,117.62.

The projected lower bound is: 2,819.65.

The projected closing price is: 2,968.63.

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 32 white candles and 18 black candles for a net of 14 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 33.4967. This is not an overbought or oversold reading. The last signal was a sell 2 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 48.58. 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 25 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 -24. 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 5 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -28.244 at 2,968.517. Volume was 50% above average (neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
3,001.7623,010.0292,968.5172,968.51735,247,095,808
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,986.19 2,997.32 2,944.40
Volatility: 40 32 21
Volume: 38,503,358,464 29,485,479,936 20,461,578,240

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 0.8% above its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 4 periods.

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