Shanghai: SSE Composite Index (.SSEC) stocks snap 5-day rally on downbeat data
China stocks fell on Tuesday, snapping a five-day winning streak, as the latest factory gate data added to the country’s economic woes and a deal to end the trade war with the United States remained elusive.
The blue-chip CSI300 index .CSI300 fell 0.4%, to 3,936.25, while the Shanghai Composite Index .SSEC shed 0.6% to 2,991.05 points.
China’s factory gate prices declined at the fastest pace in more than three years in September, reinforcing the case for Beijing to unveil further stimulus as manufacturing cools on weak demand and U.S. trade pressures.
That came after data showed a slide in China’s exports picked up pace in September, while imports contracted for a fifth straight month.
Doubts remained as to whether China and the United States could come to a durable deal to end their more than one-year-long trade war.
U.S. Treasury Secretary Steven Mnuchin said on Monday that an additional round of tariffs on Chinese imports would likely be imposed if a trade deal with China had not been reached by then, but added that he expected the agreement to go through.
Analysts recommended taking a cautious stance as the benchmark Shanghai index approached the 3,000-point level, a key resistance since early May.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 3,065.85.
The projected lower bound is: 2,918.24.
The projected closing price is: 2,992.05.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 83.0139. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 57.14. 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 15 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 76. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 0 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -16.837 at 2,991.046. Volume was 14% below average (neutral) and Bollinger Bands were 19% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,948.06 2,916.93 2,891.26
Volatility: 15 16 23
Volume: 15,224,235,008 17,692,321,792 23,013,660,672
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 3.5% above 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 4 periods.