Shanghai: SSE Composite Index (.SSEC) still in bear market territory
China’s Shanghai Composite ended September with a positive weekly chart but with the index still in bear market territory, 21.3% below its 2018 high of 3,587.03 set on January 29. The Chinese market was closed last week for a holiday. Monday’s decline of nearly 3% has the index below its five-week modified moving average of 2,773.
TheShanghai Composite(2,716.51 on October 8) remains in bear market territory, 24.3% below its 2018 high of 3,587.03 set on January 29. My annual and monthly value levels lag at 2,475 and 2,452, respectively, with my quarterly and semiannual risky levels at 3,181 and 4,458, respectively.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 2,820.79.
The projected lower bound is: 2,615.70.
The projected closing price is: 2,718.24.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 34.2972. 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 47.22. 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 60 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 -13. This is not a topping or bottoming area. The last signal was a sell 1 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 buy 9 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 4.502 at 2,721.013. Volume was 8% below average (neutral) and Bollinger Bands were 10% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,759.61 2,753.88 3,069.06
Volatility: 31 24 22
Volume: 13,028,347,904 12,437,566,464 15,003,481,088
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 11.3% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 7 periods.