Shanghai: SSE Composite Index (.SSEC) Stocks Mostly Up as Chinese Rates Stay Put
Stocks in major Asian markets were mostly higher on Monday, with the People’s Bank of China keeping the loan prime rate unchanged.
In Japan, the Nikkei 225 index gained 42.25 points, or 0.2%, to 24,083.51, despite shares of index heavyweight Fast Retailing falling 1.6%.
The Japanese yen traded at 110.17 per U.S. dollar after weakening from levels below 109.8 last week.
In Hong Kong, the Hang Seng index subtracted 260.51 points, or 0.9%, to 28,795.51.
Korean indices saw gains, as shares of industry heavyweight Samsung Electronics jumped 1.8% after the firm announced some leadership changes.
Australian markets struggled higher. Meantime, the Australian dollar changed hands at $0.6886 after declining from levels above $0.692 in the previous trading week.
In Shanghai, the CSI 300 added 30.98 points, or 0.8%, to 4,185.83.
Shares of Chinese drugmakers and facial mask firms also surged amid concerns over a coronavirus outbreak in the the country. Jiangsu Sihuan Bioengineering and Shandong Lukang Pharmaceutical saw their stock surge by about 10%, their daily movement limit. Meanwhile, facial mask maker Shanghai Dragon also soared around 10%.
The moves came as the People’s Bank of China kept the one-year and five-year loan prime rates unchanged for January.
In other markets
In Taiwan, the Taiex moved ahead 28.42 points, or 0.2%, to 12,118.71
In Korea, the Kospi index was positive 12.07 points, or 0.5%, to 2,262.64
In Singapore, the Straits Times Index slid 0.94 points to 3,280.09
In New Zealand, the NZX 50 deleted 53.26 points, or 0.5%, to 11,746.95
In Australia, the ASX 200 improved 15.39 points, or 0.2%, to 7,079.52
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 3,003.58.
The projected upper bound is: 3,159.91.
The projected lower bound is: 3,036.92.
The projected closing price is: 3,098.42.
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 28 white candles and 22 black candles for a net of 6 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 22.6980. This is not an overbought or oversold reading. The last signal was a buy 0 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 62.34. 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 4 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 8. This is not a topping or bottoming area. The last signal was a sell 8 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 2 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 20.292 at 3,095.787. Volume was 19% above average (neutral) and Bollinger Bands were 20% 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: 3,091.67 2,977.74 2,968.18
Volatility: 13 13 19
Volume: 22,754,146,304 18,711,216,128 20,305,864,704
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 4.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 26 periods.
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