Shanghai: SSE Composite Index (.SSEC) stocks fall as U.S. charges against Huawei hit sentiment
China and Hong Kong stocks fell on Tuesday, as Washington’s sweeping criminal charges against Chinese telecom giant Huawei dampened prospects for a Sino-U.S. trade deal, hitting investors’ sentiments.
*But losses on the mainland were limited by Beijing’s fresh measures to prop the market and stimulate the sluggish economy.
The CSI300 index fell 0.1 percent to 3,180.57 at the end of the morning session, while the Shanghai Composite Index lost 0.5 percent to 2,583.94.
Chinese H-shares listed in Hong Kong fell 0.57 percent to 10,819.94, while the Hang Seng index was down 0.59 percent at 27,413.16.
Investor sentiment, already shaken by pessimism over global growth, took another hit after the U.S. Justice Department unsealed indictments against China’s top telecom equipment maker Huawei, accusing it of bank and wire fraud to evade Iran sanctions and conspiring to steal trade secrets from T-Mobile US Inc.
The jolt to Huawei could undermine prospects for a trade deal between the economic giants as markets nervously await a fresh round of trade talks with Chinese Vice Premier Liu He set to meet U.S. officials on Wednesday and Thursday.
To aid China’s struggling economy, the country’s state planner on Tuesday unveiled a flurry of measures aimed at spurring sales of items ranging from cars and appliances to information services.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 2,668.76.
The projected lower bound is: 2,516.35.
The projected closing price is: 2,592.56.
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 26 white candles and 24 black candles for a net of 2 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.
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 51.9165. This is not an overbought or oversold reading. 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 56.00. 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 70 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 31. This is not a topping or bottoming area. The last signal was a sell 0 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 16 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -2.723 at 2,594.254. Volume was 2% above average (neutral) and Bollinger Bands were 19% 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: 2,588.19 2,574.66 2,783.96
Volatility: 12 19 24
Volume: 15,659,255,808 14,714,644,480 14,091,886,592
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 6.8% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 10 periods.