Shanghai: SSE Composite Index (.SSEC) stocks flat as investors await trade deal details

Shanghai: SSE Composite Index (.SSEC) stocks flat as investors await trade deal details

Shanghai: SSE Composite Index (.SSEC) stocks flat as investors await trade deal details

China’s major stock indexes ended roughly flat on Thursday in thin trading, as caution prevailed as investors awaited more details on a proposed Sino-US trade deal.

The blue-chip CSI300 index rose 0.1 per cent, to 3,925.22, while the Shanghai Composite Index slipped 0.1 per cent to 2,977.33.

US and Chinese trade negotiators are working on nailing down a Phase 1 trade deal text for their presidents to sign next month, US Treasury Secretary Steven Mnuchin said on Wednesday, adding he was prepared to travel to Beijing for more meetings if necessary.

On the same day, the US State Department and Congress took aim at China, even as President Donald Trump hailed “goodwill” between Washington and Beijing and said he expected to sign the first phase of a trade deal with President Xi Jinping next month.

China said it would remove business restrictions on foreign banks, brokerages and fund management firms, though market reaction was muted as the move could have limited impact on the competitive landscape of an industry dominated by China’s state firms.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,051.60.

The projected lower bound is: 2,904.87.

The projected closing price is: 2,978.23.

Candlesticks

A black body occurred (because prices closed lower 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 29 white candles and 21 black candles for a net of 8 white candles.

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.

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 59.5373. This is not an overbought or oversold reading. The last signal was a sell 1 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 54.16. 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 17 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 46. This is not a topping or bottoming area. The last signal was a sell 2 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 buy 2 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -1.378 at 2,977.334. Volume was 32% below average (neutral) and Bollinger Bands were 24% narrower than normal.

Open     High      Low     Close     Volume___
2,979.9932,986.7192,969.5682,977.33412,252,761,088
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,955.21 2,918.36 2,895.08
Volatility: 12 16 23
Volume: 14,373,609,472 17,658,411,008 23,018,213,376

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 2.8% 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 6 periods.

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