Shanghai: SSE Composite Index (.SSEC) stocks rise most in two weeks on fresh stimulus hopes
China stocks rose the most in two weeks on Tuesday, as a cut in a key interbank funding rate on Monday bolstered hopes for more government stimulus to prop up slowing growth.
The blue-chip CSI300 index rose 1.0%, to 3,947.04, while the Shanghai Composite Index gained 0.9%, to 2,933.99.
The People’s Bank of China unexpectedly trimmed a closely watched money market funding rate on Monday, the first such cut in more than four years and a signal to markets that policymakers are ready to act to prop up slowing growth.
The largest percentage gainers in the main Shanghai Composite index were Jiangsu Zongyi Co Ltd, up 10.08%, followed by Jiangsu Lugang Culture Co Ltd, gaining 10.07%, and Panda Financial Holding Corp Ltd, up by 10.05%.
The largest percentage losers in the Shanghai index were Zhejiang Shengda Bio-Pharm Co Ltd, down 7.14%, followed by Ribo Fashion Group Co Ltd, losing 4.94%, and Jiangxi Lianchuang Opto Electronic Science &Technology Co Ltd, down by 4.26%.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 2,939.62.
The projected upper bound is: 2,997.52.
The projected lower bound is: 2,870.86.
The projected closing price is: 2,934.19.
A white body occurred (because prices closed higher 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 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 52.6006. This is not an overbought or oversold reading. The last signal was a buy 1 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 48.53. 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 40 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 -34. This is not a topping or bottoming area. The last signal was a buy 1 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 6 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 24.791 at 2,933.991. Volume was 17% below average (neutral) and Bollinger Bands were 33% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,929.59 2,961.03 2,942.22
Volatility: 14 14 23
Volume: 13,938,850,816 16,560,484,352 23,055,732,736
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 0.3% below 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 29 periods.
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