Shanghai: SSE Composite Index (.SSEC) securities regulator pledges to enhance market liquidity

Shanghai: SSE Composite Index (.SSEC) securities regulator pledges to enhance market liquidity

Shanghai: SSE Composite Index (.SSEC) securities regulator pledges to enhance market liquidity

Chinese shares rebounded on Tuesday after securities regulator pledged to enhance the market liquidity, but comments from US President Donald Trump that new tariffs on China are “waiting to go if we can’t make a deal” underscored market uncertainty over trade.

The CSI300 index ended 1.1 per cent higher at 3,110.26 points after falling 3 per cent on Monday, while the Shanghai Composite Index closed up 1 per cent at 2,568.05 points after Monday’s 2.2 per cent drop.

Both indexes reversed early losses that had seen the Shanghai Composite down as much as 0.8 per cent and the CSI300 down as much as 0.85 per cent. But fragile sentiment also trimmed the gains. The Shanghai Composite and CSI300 had risen as much as 1.76 per cent and 2.27 per cent, respectively.

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 2,741.04.

The projected upper bound is: 2,690.38.

The projected lower bound is: 2,437.00.

The projected closing price is: 2,563.69.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black 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 32.1768. This is not an overbought or oversold reading. The last signal was a buy 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 42.92. 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 7 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 -38. This is not a topping or bottoming area. The last signal was a buy 7 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 3 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 25.945 at 2,568.048. Volume was 27% above average (neutral) and Bollinger Bands were 49% wider than normal.

Open High Low Close Volume___
2,538.5742,586.9192,521.7842,568.04816,668,230,656

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

Moving Averages: 10-period 50-period 200-period
Close: 2,576.43 2,684.83 3,016.14
Volatility: 40 30 24
Volume: 15,748,918,272 12,502,361,088 15,135,895,552

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 14.9% 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 12 periods.

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