Shanghai: SSE Composite Index (.SSEC) shares rise amid wait for China data, global earnings

Shanghai: SSE Composite Index (.SSEC) shares rise amid wait for China data, global earnings

Shanghai: SSE Composite Index (.SSEC) shares rise amid wait for China data, global earnings

Asian shares rose Tuesday although investors were braced for a sobering first look at how the coronavirus pandemic has hurt global corporate earnings and the Chinese economy, the driver of growth for the region.

Japan’s benchmark Nikkei 225 added 2.2% in morning trading to 19,471.77. Australia’s S&P/ASX 200 gained 0.6% to 5,421.50, while South Korea’s Kospi jumped 1.4% to 1,850.83. Hong Kong’s Hang Seng edged up 0.4% to 24,399.68, and the Shanghai Composite added 0.5% to 2,797.96.

Market players are were awaiting Chinese trade data for March. The customs agency in Beijing said exports fell 3.5% in Chinese currency terms to 1.3 trillion yuan ($183 billion). It didn’t immediately report figures in U.S. dollars, in which all of China’s trade is conducted, or give a year-on-year comparison, its standard measurement of growth.

Exports sank 17.2% in February in U.S. dollar terms as anti-virus controls closed factories, shopping malls and other businesses. The customs agency said trade will face further pressure due to weakness in the global economy.

On Wall Street, the S&P 500 fell 1% after cutting early losses by more than half toward the end of the day. The benchmark index surged 12% last week, its best gain since 1974.

Financial, industrial and health care stocks took some of the heaviest selling. Amazon and a few other retailers were bright spots. Traders continued to watch for more signs that the coronavirus outbreak may be leveling off and what that could mean for the prospects of reopening the economy.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,933.66.

The projected lower bound is: 2,672.45.

The projected closing price is: 2,803.05.

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 30 white candles and 20 black candles for a net of 10 white 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 40.3394. This is not an overbought or oversold reading. The last signal was a sell 1 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 48.09. 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 48 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 52. This is not a topping or bottoming area. The last signal was a sell 2 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 10 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 18.900 at 2,801.948. Volume was 59% below average (consolidating) and Bollinger Bands were 41% narrower than normal.

Open     High      Low     Close     Volume___
2,794.8012,804.9802,789.4282,801.94810,631,201,792
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 2,787.31 2,873.44 2,931.82
Volatility: 18 29 23
Volume: 21,233,438,720 30,430,650,368 21,027,923,968

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 4.4% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 20 periods.

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