Shanghai: SSE Composite Index (.SSEC) stocks drop as concerns about trade war resurface

Shanghai: SSE Composite Index (.SSEC) stocks drop as concerns about trade war resurface

Shanghai: SSE Composite Index (.SSEC) stocks drop as concerns about trade war resurface

Stocks in Hong Kong and China both fell on Tuesday on concerns that the world’s two largest economies will fail to reach any agreement on resolving the trade war at the G20 summit later this week.

China stocks were mixed after the close on Tuesday, as gains in the Software & Computer Services, Technology and Technology Hardware & Equipment sectors led shares higher while losses in the Travel & Leisure, Real Estate Investments & Services and Banking sectors led shares lower.

At the close in Shanghai, the Shanghai Composite fell 0.04%, while the SZSE Component index climbed 0.25%.

The best performers of the session on the Shanghai Composite were Guangxi Guidong Eletric Power Co Ltd (SS:600310), which rose 10.13% or 0.400 points to trade at 4.350 at the close. Meanwhile, ARTS Group Co Ltd (SS:603017) added 10.00% or 0.950 points to end at 10.450 and Eastern Communications Co Ltd A (SS:600776) was up 9.98% or 0.490 points to 5.400 in late trade.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,702.82.

The projected lower bound is: 2,442.75.

The projected closing price is: 2,572.78.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 5.4051. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 41.48. 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 27 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 -138.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -1.131 at 2,574.679. Volume was 14% below average (neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
2,585.8262,592.5352,566.1662,574.67912,365,843,456

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

Moving Averages: 10-period 50-period 200-period
Close: 2,635.58 2,649.19 2,934.34
Volatility: 22 31 25
Volume: 19,174,041,600 15,745,648,640 14,829,277,184

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 12.3% below its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on .SSEC and have had this outlook for the last 8 periods.

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