Shanghai: SSE Composite Index (.SSEC) Trade uncertainty remains as Trump ‘in no rush’ for deal with China
Shares in China ended lower for a second consecutive session on Thursday after data underscored concerns about slowing growth in the world’s second-largest economy, amid ongoing uncertainty over a deal to end the Sino-U.S. trade dispute.
At the close, the Shanghai Composite index was down 1.2 percent at 2,990.69. The blue-chip CSI300 index was down 0.69 percent.
The smaller Shenzhen index ended down 2.31 percent and the start-up board ChiNext Composite index was weaker by 2.58 percent. The imminent launch of a highly anticipated new tech board is seen as putting pressure on the ChiNext board amid fiercer competition for listing resources.
China’s industrial output rose 5.3 percent in the first two months of the year, the National Bureau of Statistics (NBS) said, less than expected and the slowest pace since early 2002. However, investment picked up speed as the government fast-tracked more road and rail projects, and more monetary policy support is expected this year.
The People’s Bank of China on Thursday reiterated its intention to strike a balance between stabilising growth and preventing risks, and to step up counter-cyclical adjustment of monetary policy.
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 2,818.38.
The projected upper bound is: 3,118.39.
The projected lower bound is: 2,882.41.
The projected closing price is: 3,000.40.
A black body occurred (because prices closed lower 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 32 white candles and 18 black candles for a net of 14 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 40.4725. This is not an overbought or oversold reading. 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 60.14. 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 4 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 -14. This is not a topping or bottoming area. The last signal was a sell 4 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 1 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -36.266 at 2,990.685. Volume was 73% above average (neutral) and Bollinger Bands were 121% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,035.91 2,716.24 2,746.92
Volatility: 36 26 26
Volume: 47,759,998,976 25,893,801,984 16,936,981,504
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 8.9% above 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 37 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.