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Shanghai: SSE Composite Index (.SSEC) stocks slip on trade deal uncertainty

Shanghai: SSE Composite Index (.SSEC) stocks slip on trade deal uncertainty

China stocks eased on Tuesday, as investors were cautious amid uncertainty whether Beijing and Washington could strike a durable deal, while Hong Kong shares rose in line with a global rally in the previous session.

The CSI300 index fell 0.1% to 3,933.69 at the end of the morning session, while the Shanghai Composite Index lost 0.1% to 3,043.01.

U.S. President Donald Trump said on Monday that trade talks with China were under way and any deal would need to be somewhat tilted in favor of the United States.

Trump and Chinese President Xi Jinping agreed in a meeting on Saturday at a G20 summit in Japan to restart trade talks after the last major round of negotiations collapsed in May.

Investors also turned their attention to China’s domestic factors, as they watched if Beijing could temper stimulus measures given the trade truce.

China’s economy is likely to hit its growth target this year provided a bitter trade dispute with the United States does not worsen, and hence will not need “very big” stimulus measures to prop up growth, a central bank adviser said on Monday.

China’s factory activity shrank more than expected in June, an official manufacturing survey showed, highlighting the need for more economic stimulus as U.S. tariffs and weaker domestic demand ramped up pressure on new orders for goods.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,165.55.

The projected lower bound is: 2,913.56.

The projected closing price is: 3,039.56.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 84.4334. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 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 63.59. 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 36 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 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 25 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -0.960 at 3,043.943. Volume was 31% below average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
3,042.5803,048.4843,033.7813,043.94321,452,062,720

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

Moving Averages: 10-period     50-period     200-period
Close: 2,993.79 2,962.01 2,796.78
Volatility: 20 27 27
Volume: 22,795,747,328 23,247,048,704 22,259,081,216

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 8.8% above its 200-period moving average and is in an upward trend. Volatility is 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 12 periods.

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