Shanghai: SSE Composite Index (.SSEC) stocks hit a more than three-month low

Shanghai: SSE Composite Index (.SSEC) stocks hit a more than three-month low

Shanghai: SSE Composite Index (.SSEC) stocks hit a more than three-month low

Shanghai stocks hit a more than three-month low on Tuesday, as Washington’s latest tariffs added to jitters over the prospects of a so-called “phase one” Sino-U.S. trade deal.

The Shanghai Composite Index shed as much as 0.6% to touch its lowest since Aug 26 before recouping some loses to end the morning session 0.1% lower, while the CSI300 index was unchanged at 3,836.25 points.

U.S. President Donald Trump on Monday announced tariffs on U.S. steel and aluminium imports from Brazil and Argentina.

Trump also said U.S. legislation backing protesters in Hong Kong did not make trade negotiations with China easier, but added he believes Beijing still wants a deal.

Meanwhile, China banned U.S. military ships and aircraft from visiting Hong Kong and slapped sanctions on several U.S. non-government organisations for allegedly encouraging anti-government protesters in the city to commit violent acts.

Following Trump’s surprise Latin American tariffs decision, there are worries that disputes between China and the United States would be hard to resolve given Trump’s emphasis on America’s interests, said Tian Weidong, an analyst with Kaiyuan Securities.

Losses in the A-share market were more limited than other markets as China’s onshore equity market had been relatively weak recently, he added.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 2,931.77.

The projected upper bound is: 2,940.09.

The projected lower bound is: 2,825.57.

The projected closing price is: 2,882.83.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

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 34.1033. This is not an overbought or oversold reading. The last signal was a buy 11 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 41.65. 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 50 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 -141.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 11 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 sell 16 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 8.892 at 2,884.699. Volume was 23% below average (neutral) and Bollinger Bands were 28% narrower than normal.

Open     High      Low     Close     Volume___
2,869.8822,884.8562,857.3202,884.69912,377,874,432
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 2,893.86 2,940.45 2,957.02
Volatility: 9 12 23
Volume: 13,965,637,632 14,769,260,544 23,023,187,968

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 2.4% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .SSEC (mildly bearish). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 39 periods.

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