Shanghai: SSE Composite Index (.SSEC) stocks lose most in a month as lowest GDP growth on record fuels fears of long-term slowdown
Both the Shanghai Composite Index and the CSI 300, which tracks blue chips listed in Shenzhen and Shanghai, dropped the most in a month on Friday, as China’s third-quarter GDP growth at 6.0 per cent, the lowest on record, fuelled concerns about the state of the economy.
The Shanghai Composite Index slid 1.3 per cent, finishing the day at 2,938,14, while the CSI 300 closed 1.4 per cent lower at 3,869.38.
In Hong Kong, property developers and financial firms led the Hang Seng Index down 0.5 per cent to 26,719.58. For the week, however, the benchmark gauge rose 1.5 per cent.
China’s first-quarter GDP growth was 6.4 per cent, falling to 6.2 per cent in the second quarter.
Leading the losses in Shanghai were financials, with Ping An Insurance falling 2.2 per cent to 89.75 yuan, China Merchant Bank also dropping 2.2 per cent, to 36.18 yuan, and Industrial and Commercial Bank of China edging down 0.7 per cent to 5.67 yuan.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,013.30.
The projected lower bound is: 2,864.15.
The projected closing price is: 2,938.73.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
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 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 35.0248. 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 46.24. 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 18 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 -10. This is not a topping or bottoming area. The last signal was a sell 3 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 3 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -39.193 at 2,938.141. Volume was 16% below average (neutral) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,955.81 2,918.94 2,896.89
Volatility: 15 16 23
Volume: 14,544,457,728 17,673,613,312 23,034,691,584
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 1.4% 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 7 periods.