Shanghai: SSE Composite Index (.SSEC) stocks rise on hopes for trade talks

Shanghai: SSE Composite Index (.SSEC) stocks rise on hopes for trade talks

China stocks were higher after the close on Thursday, as gains in the Telecoms, Mobile and Software & Computer Services sectors led shares higher.

At the close in Shanghai, the Shanghai Composite gained 1.36%, while the SZSE Component index gained 1.18%.

The best performers of the session on the Shanghai Composite were China Hi-Tech Group Co Ltd (SS:600730), which rose 10.08% or 0.52 points to trade at 5.68 at the close. Meanwhile, Shanghai Shibei Hi-Tech Co Ltd A (SS:600604) added 10.04% or 0.76 points to end at 8.33 and Tengda Construction Group Co Ltd (SS:600512) was up 10.04% or 0.240 points to 2.630 in late trade.

The worst performers of the session were Nanjing Chixia Development Co Ltd (SS:600533), which fell 5.21% or 0.190 points to trade at 3.460 at the close. Harbin Gong Da High-Tech Enterprise Development Co Ltd (SS:600701) declined 5.11% or 0.160 points to end at 2.970 and Shanghai Zhongyida Co Ltd B (SS:900906) was down 5.11% or 0.007 points to 0.130.

The top performers on the SZSE Component were China Baoan Group Co Ltd (SZ:000009) which rose 10.09% to 5.02, GuangDong Huasheng Electrical Appliances Co Ltd (SZ:002670) which was up 10.05% to settle at 10.29 and Hunan TV & Broadcast Intermediary Co Ltd (SZ:000917) which gained 10.04% to close at 6.14.

The worst performers were Jiangsu Kangde Xin Composite Material Co Ltd (SZ:002450) which was down 10.01% to 12.40 in late trade, Zibo Qixiang Tengda Chemical Co Ltd (SZ:002408) which lost 9.95% to settle at 9.95 and Jiangsu Nhwa Pharmaceutical Co Ltd (SZ:002262) which was down 5.44% to 12.70 at the close.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,794.13.

The projected lower bound is: 2,538.17.

The projected closing price is: 2,666.15.

Candlesticks

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 24 white candles and 26 black candles for a net of 2 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with SSE COMPOSITE), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 77.0377. This is not an overbought or oversold reading. The last signal was a sell 5 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 53.83. 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 19 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 72. This is not a topping or bottoming area. The last signal was a sell 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 15 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 35.928 at 2,668.170. Volume was 50% above average (neutral) and Bollinger Bands were 35% narrower than normal.

Open High Low Close Volume___
2,632.1382,668.1702,631.8872,668.17020,784,871,424

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,646.29 2,662.12 2,970.06
Volatility: 23 31 25
Volume: 19,383,521,280 14,487,727,104 15,033,155,584

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.

Summary

SSE COMPOSITE is currently 10.2% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 0 periods.

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