Shanghai: SSE Composite Index (.SSEC) stocks higher, blue-chip CSI300 index up
China’s major stock indexes closed near their 6-1/2-month highs on Monday, as sentiment was bolstered by high expectations of the U.S. Federal Reserve taking a dovish stance at its policy meeting this week and Beijing’s policy boost for growth.
At the close, the blue-chip CSI300 index settled 2.9 percent higher at 3,851.75 points, while the Shanghai Composite Index ended up 2.5 percent at 3,096.42 points.
At close, both indexes were within sight of their highs since late May, 2018.
There is much talk Fed policymakers will lower their interest rate forecasts, or “dot plots”, to show little or no further tightening this year.
The Chinese government has additional monetary policy measures that it can take to support economic growth this year, and will even cut “its own flesh” to help finance large-scale tax cuts, Premier Li Keqiang said on Friday.
So far this year, the Shanghai stock index is up 24.2 percent and the CSI300 has risen 27.9 percent , while China’s H-share index listed in Hong Kong is up 14.8 percent. Shanghai stocks have risen 5.29 percent this month.
About 39.78 billion shares were traded on the Shanghai exchange, roughly 118.0 percent of the market’s 30-day moving average of 33.72 billion shares a day. The volume in the previous trading session was 34.12 billion.
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 2,820.58.
The projected upper bound is: 3,229.29.
The projected lower bound is: 2,988.08.
The projected closing price is: 3,108.68.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 34 white candles and 16 black candles for a net of 18 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 54.9736. This is not an overbought or oversold reading. The last signal was a sell 6 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 67.50. 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 6 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 76. This is not a topping or bottoming area. The last signal was a sell 6 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 3 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 74.666 at 3,096.417. Volume was 81% above average (neutral) and Bollinger Bands were 89% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,045.57 2,738.97 2,745.37
Volatility: 37 27 26
Volume: 46,435,672,064 26,883,395,584 17,152,107,520
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 12.8% 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 39 periods.