Shanghai: SSE Composite Index (.SSEC) signs of fresh trade talks between Beijing and Washington

Shanghai: SSE Composite Index (.SSEC) signs of fresh trade talks between Beijing and Washington

Shanghai: SSE Composite Index (.SSEC) signs of fresh trade talks between Beijing and Washington

China stocks closed higher for a second straight session on Tuesday, supported by expectation of further policy support, signs of fresh trade talks between Beijing and Washington, and gains in consumer scrips.

The Shanghai Composite index climbed 0.9 percent and the blue-chip CSI300 index rose 1.01 percent.

The smaller Shenzhen index gained 1.6 percent and the start-up board ChiNext Composite index was higher by 1.7 percent.

After regulators stepped in to help out companies crippled by pledged share financing, investors are hopeful that authorities will roll out more measures to keep stock prices stable, said Zhang Qi, an analyst with Haitong Securities in Shanghai.

The commerce ministry said on Monday that China’s foreign trade will face a more severe and complicated situation in 2019 and the government will push the implementation of policies to ease burdens on exporters and importers.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,779.04.

The projected lower bound is: 2,525.67.

The projected closing price is: 2,652.36.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 42.5391. This is not an overbought or oversold reading. The last signal was a sell 3 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 52.37. 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 17 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 51. This is not a topping or bottoming area. The last signal was a sell 5 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 13 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 24.360 at 2,654.879. Volume was 82% above average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
2,600.5002,666.4852,597.3482,654.87924,928,243,712

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

Moving Averages: 10-period 50-period 200-period
Close: 2,637.15 2,667.06 2,977.97
Volatility: 22 30 25
Volume: 18,735,083,520 14,032,944,128 15,046,266,880

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 10.8% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 5 periods.

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