Shanghai: SSE Composite Index (.SSEC) rising investor optimism

Shanghai: SSE Composite Index (.SSEC) rising investor optimism

Shanghai: SSE Composite Index (.SSEC) rising investor optimism

Stocks in China closed higher on Wednesday amid rising investor optimism after authorities this week pledged support for markets, but the country’s main indexes fell sharply for the month while new manufacturing data pointed to weakness ahead.

*At the close of trade, the Shanghai Composite index was 1.4 percent higher at 2,602.78 points. The index fell 7.7 percent for the month, its biggest monthly drop since June. ** The blue-chip CSI300 index ended 1.4 higher, but is down 8.3 percent for the month, its worst monthly performance since January 2016.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 2,737.60.

The projected upper bound is: 2,726.97.

The projected lower bound is: 2,471.47.

The projected closing price is: 2,599.22.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 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 39.6463. This is not an overbought or oversold reading. The last signal was a buy 8 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 46.82. 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 8 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 46. This is not a topping or bottoming area. The last signal was a buy 8 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 4 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 34.735 at 2,602.783. Volume was 38% above average (neutral) and Bollinger Bands were 35% wider than normal.

Open High Low Close Volume___
2,573.0152,612.9222,567.0272,602.78318,055,034,880

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

Moving Averages: 10-period 50-period 200-period
Close: 2,580.55 2,681.27 3,012.41
Volatility: 40 31 24
Volume: 16,254,881,792 12,644,320,256 15,125,030,912

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 13.6% below its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 13 periods.

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