Shanghai: SSE Composite Index (.SSEC) stocks close higher as banks, real estate stocks rally

Shanghai: SSE Composite Index (.SSEC) stocks close higher as banks, real estate stocks rally

Shanghai: SSE Composite Index (.SSEC) stocks close higher as banks, real estate stocks rally

China stocks erased losses to end higher on Wednesday, as banks and real estate firms jumped, while investors were cautious ahead of important trade talks between the U.S. and China.

The blue-chip CSI300 index rose 0.1% to 3,843.24, while the Shanghai Composite Index closed up 0.4% at 2,924.86.

The U.S. State Department announced visa restrictions on Chinese officials just a day after the U.S. Commerce Department cited the mistreatment of Uighur Muslims in China in its decision to add 20 Chinese public security bureaus and eight companies to a trade blacklist.

Washington is also moving ahead with discussions about restrictions on capital flows into China, Bloomberg reported.

Among sectors, real estate firms led gains, rising due to strong monthly property sales figures and speculation of some localised potential policy easing.

Meanwhile, the CSI300 banks index rose 1.1%, led by China Everbright Bank climbing 3.4%.

China’s new bank loans likely rose in September but other key gauges of credit growth remained lacklustre, a Reuters poll showed, reinforcing expectations Beijing needs to deliver more support to stabilise the economy as trade pressures build.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 2,996.92.

The projected lower bound is: 2,853.79.

The projected closing price is: 2,925.35.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white 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 16.7678. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 12 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 45.33. 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 sell 11 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 -111.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 13 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 11.286 at 2,924.857. Volume was 28% below average (neutral) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
2,902.0752,924.8572,891.5392,924.85713,042,414,592
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,952.84 2,913.45 2,883.73
Volatility: 12 16 23
Volume: 15,398,664,192 17,509,982,208 22,918,322,176

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 1.4% above its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 0 periods.

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