Shanghai: SSE Composite Index (.SSEC) prospects for the country’s economic growth remain uncertain
These are volatile times for China’s stock market. The first trading day of the week saw the biggest gains for the Shanghai Composite Index in more than two and a half years. On Tuesday, the market plunged. And over the past year, the market is still one of the worst performers in the world.
Even if you pay close attention to stock markets, the Chinese market is always a tough read. Many characteristics that investors like about publicly traded markets are totally absent here.
There’s not a lot of transparency, information is not universally shared, and the market’s not liquid — meaning that for foreign investors it’s not necessarily easy to get in and it’s not always easy to get out quickly. Plus, the last year has been pretty dismal — the Shanghai Composite is down more than 20-percent.
Despite the short-term pop for the Shanghai index, prospects for the country’s economic growth remain uncertain; although in China government support often means a lot more than economic fundamentals.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 2,742.98.
The projected upper bound is: 2,723.57.
The projected lower bound is: 2,461.67.
The projected closing price is: 2,592.62.
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.
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 73.5668. This is not an overbought or oversold reading. The last signal was a buy 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 44.30. 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 2 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 -20. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 8 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -60.051 at 2,594.825. Volume was 37% above average (neutral) and Bollinger Bands were 66% 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: 2,587.88 2,704.49 3,033.88
Volatility: 50 31 24
Volume: 15,116,515,328 12,334,440,448 15,129,399,296
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 14.5% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 7 periods.