Shanghai: SSE Composite Index (.SSEC) rise on Wall Street lead

Shanghai: SSE Composite Index (.SSEC) rise on Wall Street lead

Shanghai: SSE Composite Index (.SSEC) rise on Wall Street lead

Hong Kong stocks ended the morning session higher on Wednesday, following a positive lead from Wall Street and an apparent easing of investor concerns about the coronavirus outbreak.

The Hang Seng Index rose 0.7 percent, to 27,774 by the break.

On the mainland, the Shanghai Composite Index gained 0.2 percent, to 2,907 while the Shenzhen Composite Index added 0.8 percent, to 1,771.

Markets in Asia-Pacific rose following another positive lead from Wall Street with investor sentiment mixed about the immediate and long-term impact of the coronavirus outbreak.

Tokyo rose 0.5 percent, Sydney gained 0.6 percent and Singapore climbed 0.7 percent. Wellington and Taipei were also up.

The largely positive morning following fresh record closes by the S&P 500 and the Nasdaq in New York on Tuesday.

Traders reacted positively to cautious comments from the US Federal Reserve Chairman Jerome Powell on the coronavirus — which has spread to more than two dozen countries and has been declared a global health emergency.

The Fed boss told Congress members on Tuesday that the central bank was closely monitoring the virus and that its impact could spill over to the world economy, but the assessment was not as gloomy as many had expected.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,049.94.

The projected lower bound is: 2,804.69.

The projected closing price is: 2,927.31.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 97.0701. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 45.95. 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 -11. This is not a topping or bottoming area. The last signal was a buy 4 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 13 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 25.225 at 2,926.899. Volume was 33% above average (neutral) and Bollinger Bands were 183% wider than normal.

Open     High      Low     Close     Volume___
2,895.5562,926.8992,892.4242,926.89924,873,342,976
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 2,884.68 2,976.11 2,951.76
Volatility: 53 27 22
Volume: 28,250,396,672 21,751,050,240 19,621,601,280

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% 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.

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