Shanghai: SSE Composite Index (.SSEC) recover poise but trade war worries persist

Shanghai: SSE Composite Index (.SSEC) recover poise but trade war worries persist

Shanghai: SSE Composite Index (.SSEC) recover poise but trade war worries persist

Asian markets also staged a recovery in the wake of the previous day’s sell-off. The Shanghai Composite index rallied 0.3 per cent after a 3.8 per cent slide, but failed to recover the 3,000 level it fell below on Tuesday for the first time in 20 months.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 3,144.29.

The projected upper bound is: 3,009.79.

The projected lower bound is: 2,813.05.

The projected closing price is: 2,911.42.

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.

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 19.4677. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 27.42. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 56 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 -223.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 17 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 7.909 at 2,915.731. Volume was 7% below average (neutral) and Bollinger Bands were 9% wider than normal.

Open High Low Close Volume___
2,889.9842,925.5612,872.1632,915.73114,430,142,464

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

Moving Averages: 10-period 50-period 200-period
Close: 3,036.38 3,113.74 3,286.62
Volatility: 23 20 17
Volume: 13,589,696,512 13,847,050,240 17,080,813,568

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 11.3% 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 moderate flows of volume out of .SSEC (mildly bearish). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 13 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an oversold condition.

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