Shanghai: SSE Composite Index (.SSEC) stocks to recover on policy easing
China stocks were lower after the close on Wednesday, as losses in the Technology Hardware & Equipment, Travel & Leisure and Technology sectors led shares lower.
At the close in Shanghai, the Shanghai Composite fell 0.31%, while the SZSE Component index declined 0.64%.
The best performers of the session on the Shanghai Composite were China Science Publishing & Media Ltd (SS:601858), which rose 10.05% or 0.83 points to trade at 9.09 at the close. Meanwhile, QuMei Home Furnishings Group Co Ltd (SS:603818) added 10.03% or 0.800 points to end at 8.780 and SJEC Corp (SS:601360) was up 10.00% or 2.350 points to 25.840 in late trade.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 2,871.11.
The projected lower bound is: 2,661.63.
The projected closing price is: 2,766.37.
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 23 white candles and 27 black candles for a net of 4 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 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 86.6413. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 49.55. 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 37 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 63. This is not a topping or bottoming area. The last signal was a buy 6 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 3 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -8.686 at 2,769.295. Volume was 25% below average (neutral) and Bollinger Bands were 37% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,730.33 2,794.50 3,142.74
Volatility: 18 24 20
Volume: 11,013,905,408 13,112,945,664 15,703,003,136
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 11.9% 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 9 periods.