Shanghai: SSE Composite Index (.SSEC) trade data for April, released Wednesday morning, showed exports missed expectations while imports saw a surprise gain
Asia stocks declined Wednesday as investors digested ongoing developments in the U.S.-China trade negotiations, which sent stateside shares tumbling overnight.
Mainland Chinese shares were lower on the day, with the Shanghai composite down 1.12% to about 2,893.76. The Shenzhen component slid 0.96% to 9,002.53 while the Shenzhen composite declined 0.649% to approximately 1,530.31.
Chinese trade data for April showed both exports and trade surplus missed expectations while imports surprisingly rose. Customs data showed trade surplus was $13.84 billion, far lower than the $35 billion analysts had expected.
April exports fell 2.7 percent from a year ago. They were expected to have risen 2.3 percent from a year earlier, according to economists Reuters polled.
The Hang Seng index in Hong Kong declined around 1.2%, as of its final hour of trading.
Elsewhere in Asia, Japan’s Nikkei 225 dropped 1.46% to close at 21,602.59, with shares of index heavyweight Fanuc declining 2.24%. The Topix index also fell 1.72% to 1,572.33.
In South Korea, the Kospi finished its trading day lower by 0.41% at 2,168.01, with Samsung Electronics shares declining 1.34%.
Australia’s ASX 200 also shed 0.42% to close at 6,269.10, as most sectors slipped. Shares of TPG Telecom plunged 13.53% after the company’s merger with Vodafone was blocked by the Australian Competition and Consumer Commission.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 3,057.64.
The projected lower bound is: 2,735.55.
The projected closing price is: 2,896.60.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 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 13.1886. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 30.13. 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 1 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 -139.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 17 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 15 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -32.634 at 2,893.757. Volume was 19% below average (neutral) and Bollinger Bands were 66% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,069.29 3,088.77 2,771.99
Volatility: 34 34 27
Volume: 28,894,056,448 38,423,449,600 20,697,821,184
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 4.4% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 6 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.