Shanghai: SSE Composite Index (.SSEC) stocks fall, oil continues climb
Hong Kong stocks closed sharply lower on Monday, extending losses from last week fuelled by fears of a Middle East conflict after the US assassinated a top Iranian general.
The Hang Seng index fell 0.8 percent, to 28,226.
Rising oil prices boosted the energy sector with PetroChina adding 4 percent and CNOOC surging 3.6 percent.
On the mainland, the Shanghai Composite Index gave up early gains and ended flat, at 3,083 while Shenzhen Composite Index managed to hold on to some early gains, to finish at1,768, up 0.4 percent.
Tokyo was down almost 2 percent as dealers returned for the first time since the new year break.
Singapore fell 0.7 percent, Seoul shed 1 percent, Taipei and Mumbai each lost more than 1 percent and Manila dived 0.9 percent, with Jakarta down 0.7 percent.
US-Iran tensions continued to dominate the market sentiments and both main crude contracts rallied in Asian trade, with Brent above US$70 for the first time since September when attacks on two Saudi Arabian facilities briefly halved output by the world’s top producer.
“Geopolitical tensions look like remaining elevated in coming days, so lending support to oil prices and keeping risk asset markets on the defensive,” said Ray Attrill at National Australia Bank.
Safe-haven assets popular in times of turmoil were also on the rise, with gold at highs not seen since mid-2013, while the Japanese yen was at a three-month high against the US dollar.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 2,974.26.
The projected upper bound is: 3,146.25.
The projected lower bound is: 3,025.70.
The projected closing price is: 3,085.98.
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 29 white candles and 21 black candles for a net of 8 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 85.6837. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 72.70. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 10 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 142.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 10 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 20 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -0.378 at 3,083.408. Volume was 79% above average (neutral) and Bollinger Bands were 39% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,028.22 2,952.39 2,966.41
Volatility: 14 13 20
Volume: 23,059,824,640 17,398,820,864 20,938,577,920
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 3.9% above 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 moderate flows of volume into .SSEC (mildly bullish). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 16 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an overbought condition.
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