Shanghai: SSE Composite Index (.SSEC) stocks gain on China virus toll drops

Shanghai: SSE Composite Index (.SSEC) stocks gain on China virus toll drops

Shanghai: SSE Composite Index (.SSEC) stocks gain on China virus toll drops

Hong Kong and Shanghai stocks ended higher on Thursday as the spread of coronavirus shows signs of easing in China, with figures showing for the first time there were more infections reported outside the country than inside.

The Hang Seng Index added 0.3 percent, to close at 26,778.

On the mainland, the Shanghai Composite Index added 0.1 percent, to 2,991 while the Shenzhen Composite Index gained 0.2 percent, to 1,895.

But other Asian markets continued to fall, with Tokyo ending down 2.1 percent.

Sydney fell 0.8 percent while Singapore, Taipei, Wellington and Jakarta were also well down.

Seoul was down 1.1 percent after authorities in South Korea said a total of 1,595 had been diagnosed with Covid-19 in the country, the highest outside China.

Still, observers warned of worse to come for markets.

The panic-selling has seen investors rush into safe havens with the yield on 10-year and 30-year Treasuries around record lows, while oil is being battered by concerns about plunging demand. Both main contracts are down about a fifth this year and are sitting at more than 12-month lows.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,121.06.

The projected lower bound is: 2,864.56.

The projected closing price is: 2,992.81.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 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.

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 46.6388. This is not an overbought or oversold reading. The last signal was a sell 2 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 51.95. 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 16 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 45. 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 9 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 3.400 at 2,991.329. Volume was 67% above average (neutral) and Bollinger Bands were 66% wider than normal.

Open     High      Low     Close     Volume___
2,992.4923,009.4582,980.4772,991.32935,052,363,776
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,995.44 2,996.24 2,941.04
Volatility: 18 28 22
Volume: 35,325,718,528 26,301,216,768 19,808,378,880

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 1.7% above its 200-period moving average and is in an upward trend. Volatility is high 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 2 periods.

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