Shanghai: SSE Composite Index (.SSEC) trade talks between the United States and Beijing saw progress
China stocks jumped on Monday after trade talks between the United States and Beijing saw progress ahead of a March 1 deadline, and new data showed Beijing’s attempts to boost investment led to record new loans in January.
At the midday break, the Shanghai Composite index was up 1.79 percent at 2,730.27 points.
China’s blue-chip CSI300 index was up 2.11 percent, with its financial sector sub-index higher by 2.01 percent.
Chinese H-shares listed in Hong Kong rose 1.74 percent at 11,127.39, while the Hang Seng Index was up 1.51 percent at 28,322.74.
U.S. President Donald trump said on Twitter that trade talks with China in Beijing had been “very productive”, following a briefing by his trade team. Chinese state media on the weekend said that the trade negotiations, which continue in Washington this week, were “making a final sprint” ahead of a March 1 deadline for a deal.
A trade detente between the U.S. and China could help a post-Lunar New Year market bounce turn into a broader market recovery phase, analysts at Huatai Securities said in a note. They also listed improving liquidity, possible policy introductions at the upcoming annual meeting of China’s parliament and expanded MSCI index inclusion of Chinese A-shares as possibly market-boosting factors.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 2,627.25.
The projected upper bound is: 2,835.86.
The projected lower bound is: 2,680.33.
The projected closing price is: 2,758.09.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 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 84.2462. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 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 71.47. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 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 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 25 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 71.972 at 2,754.357. Volume was 64% above average (neutral) and Bollinger Bands were 13% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,657.59 2,583.39 2,762.89
Volatility: 22 19 24
Volume: 17,986,461,696 14,936,695,808 14,215,426,048
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 0.3% below its 200-period moving average and is in an upward 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 moderate flows of volume into .SSEC (mildly bullish). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 19 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.