Shanghai: SSE Composite Index (.SSEC) stocks ease as investors ponder over earnings
China stocks slipped on Tuesday, as investors chewed over the third quarter corporate earnings, amid a cooling economy hit by the Sino-U.S. trade war.
The CSI300 index .CSI300 fell 0.2% to 3,873.23 at the end of the morning session, while the Shanghai Composite Index .SSEC lost 0.1% to 2,936.99.
U.S. President Donald Trump on Monday said efforts to end a U.S. trade war with China were going well as the world’s two largest economies continued to battle over trade and politics across the world despite heralding a long-awaited truce this month.
Meanwhile, China is seeking $2.4 billion in retaliatory sanctions against the United States for failing to comply with a World Trade Organization ruling in a case that highlights White House complaints about the global trade body.
Investors sought more clues from corporate results as the third quarter earnings come close to an end to gauge the city’s corporate health, amid a slowing economy and to see the impact of Beijing’s stimulative measures.
Any future support for the stock market would come from Beijing’s hedging policies and reforms that beat market expectations, as overall corporate results in the third quarter would be basically in line with falling GDP growth, Zhou Longgang, analyst with Huachuang Securities, noted in report.
By the lunchbreak, the CSI300 banks index .CSI000951 dropped 0.6%, led by Ping An Bank 000001.SZ falling 3.1% as the lender posted slower growth in the third quarter.
On the other hand, tech players rallied, with an IT index .CSIINT rising 0.8%, bolstered by solid earnings from industry leaders.
Beijing is expected to continue strong support for its tech sector in a bid to seek technological self-sufficiency as more companies were blacklisted by the U.S. amid the trade war.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,026.70.
The projected lower bound is: 2,887.38.
The projected closing price is: 2,957.04.
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 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 22.7986. This is not an overbought or oversold reading. The last signal was a sell 4 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 49.75. 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 20 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 -11. This is not a topping or bottoming area. The last signal was a sell 5 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 sell 1 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 14.762 at 2,954.380. Volume was 34% below average (neutral) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,963.33 2,923.04 2,900.93
Volatility: 14 15 23
Volume: 14,622,202,880 17,468,911,616 23,045,556,224
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 1.8% above its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 9 periods.