Shanghai: SSE Composite Index (.SSEC) Stocks pointing to more losses

Shanghai: SSE Composite Index (.SSEC) Stocks pointing to more losses

Shanghai: SSE Composite Index (.SSEC) Stocks pointing to more losses

The world-beating slump on Chinese equity markets may have more room to run, if the number of companies with stock prices below either their 200-day moving averages or book values is anything to go by.

Of the 1,478 stocks on the benchmark Shanghai Composite Index, 93.3 per cent have fallen below their average prices for the past 200 days, according to Bloomberg data.

That is not far from the 98.2 per cent recorded in January 2012 at the bottom of a slump that did not turn around until 2014. The number hit 99.9 per cent at the peak of the 2008 global financial crisis.

At the same time, the number of stocks with prices below book values indicates that there is more gloom to come.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,839.24.

The projected lower bound is: 2,630.71.

The projected closing price is: 2,734.98.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 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 66.6374. This is not an overbought or oversold reading. The last signal was a sell 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 45.16. 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 38 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 33. This is not a topping or bottoming area. The last signal was a buy 7 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 4 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -31.558 at 2,737.737. Volume was 20% below average (neutral) and Bollinger Bands were 38% narrower than normal.

Open High Low Close Volume___
2,769.3322,780.5272,736.3462,737.73710,606,094,336

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,733.58 2,791.74 3,139.35
Volatility: 19 24 20
Volume: 10,871,735,296 13,016,310,784 15,663,315,968

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 12.8% below its 200-period moving average and is in an downward trend. Volatility is high 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 10 periods.

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