Shanghai: SSE Composite Index (.SSEC) Rallied after the Trump administration invited Beijing to restart trade talks

Shanghai: SSE Composite Index (.SSEC) Rallied after the Trump administration invited Beijing to restart trade talks

Shanghai: SSE Composite Index (.SSEC) Rallied after the Trump administration invited Beijing to restart trade talks

Stock markets rallied in China and Hong Kong on Thursday and the Chinese yuan firmed after the Trump administration invited Beijing to restart trade talks, offering some hope the two sides could pull back from the brink of a full-blown trade war.

The benchmark Shanghai Composite index .SSEC ended 1.1 percent higher at 2,686.58 points after closing at its lowest level since January 2016 on Wednesday.

The blue-chip CSI300 index .CSI300 also ended 1.1 percent higher, with a sub-index tracking securities firms gaining 1.4 percent, real estate rising 0.8 percent and industrials ending up 1 percent.

“The trade war has been a hot topic in the market all year long. The lack of clarity has been a major influence on the A-share market and to have a good signal at this low point certainly has an effect,” said Li Zheming, an analyst at Datong Securities in Dalian.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,783.25.

The projected lower bound is: 2,588.01.

The projected closing price is: 2,685.63.

Candlesticks

A white body occurred (because prices closed higher 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.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 23.6556. This is not an overbought or oversold reading. The last signal was a buy 0 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 42.62. 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 48 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 -85. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 5 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 30.468 at 2,686.578. Volume was 17% below average (neutral) and Bollinger Bands were 36% narrower than normal.

Open High Low Close Volume___
2,679.2082,689.0632,653.1892,686.57810,733,501,440

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

Moving Averages: 10-period 50-period 200-period
Close: 2,697.18 2,769.24 3,103.43
Volatility: 16 22 21
Volume: 10,333,123,584 12,524,032,000 15,224,128,512

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 13.4% below its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 20 periods.

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