Shanghai: SSE Composite Index (.SSEC) shares add 0.1%, blue chips close flat
China stocks ticked up on Thursday as global central banks look poised to ease policies, while concerns about a slowdown in the country’s economic growth weighed on investor sentiment.
At the close, the Shanghai Composite index was up 0.1% at 2,917.76. The blue-chip CSI300 index was flat.
CSI300’s financial sector sub-index was higher by 0.1%, the consumer staples sector fell 0.2%, while the healthcare sub-index eased 0.3%.
The smaller Shenzhen index ended down 0.1%, while the start-up board ChiNext Composite index was higher by 0.2%.
China will release its second-quarter gross domestic product (GDP) data on Monday, July 15.
Growth is expected to slow to a near 30-year low of 6.2% this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand to offset the trade war’s impact. Some economists said they expected Beijing to roll out more stimulus soon to ward off a sharper slowdown.
China will stabilise trade by reducing tariffs, improving export tax rebate policies and cutting insurance fees for export companies, state media reported on Wednesday, citing a state council meeting chaired by Premier Li Keqiang.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3,037.61.
The projected lower bound is: 2,791.17.
The projected closing price is: 2,914.39.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 9.4760. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 43.21. 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 43 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 -120.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 2.459 at 2,917.761. Volume was 51% below average (consolidating) and Bollinger Bands were 36% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,979.40 2,929.61 2,805.59
Volatility: 21 27 27
Volume: 18,460,872,704 21,237,753,856 22,490,685,440
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.
SSE COMPOSITE is currently 4.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .SSEC and have had this outlook for the last 19 periods.