Shanghai: SSE Composite Index (.SSEC) stocks are regaining their appeal as the US economy comes back down to Earth
Last Monday, the Shanghai Composite Index closed at its lowest level since November 2014, dipping below its trough in January 2016 following the bursting of China’s stock market bubble.
On the same day, the benchmark S&P 500 index was within striking distance of another record high, of which there have so far been 19 this year, with the latest one set last Friday as international investors downplayed concerns over the escalating trade war and a renewed rise in US bond yields.
Yet while the S&P 500 rose a further 0.8 per cent last week, the CSI 300 Index, a gauge of large mainland-listed stocks, was up more than 5 per cent, with the index surging 3 per cent last Friday, its biggest daily gain since March 2016, according to data from Reuters.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 2,892.40.
The projected lower bound is: 2,701.23.
The projected closing price is: 2,796.81.
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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
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 91.0120. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 60.67. 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 54 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 176.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 3 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 68.241 at 2,797.485. Volume was 23% above average (neutral) and Bollinger Bands were 25% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,696.79 2,758.33 3,084.80
Volatility: 22 22 21
Volume: 11,157,532,672 12,421,170,176 15,071,649,792
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 9.3% 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 1 periods.
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