Shanghai: SSE Composite Index (.SSEC) trade war caution persists

Shanghai: SSE Composite Index (.SSEC) trade war caution persists

Shanghai: SSE Composite Index (.SSEC) trade war caution persists

Shares in China gave up ground on Thursday after two days of gains, as investor sentiment remained fragile following the latest volley of tariffs in the Sino-US trade war.

At the close, the Shanghai Composite index was down 0.1 per cent at 2,729.24 points.

The blue-chip CSI300 index ended down 0.1 per cent, with its financial sector sub-index closing 0.01 per cent weaker, the consumer staples sector ended 0.08 per cent higher, the real estate index closed down 0.43 per cent and healthcare sub-index ended 0.44 per cent lower.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,818.00.

The projected lower bound is: 2,636.15.

The projected closing price is: 2,727.08.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 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 Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 87.5481. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 51.48. 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 53 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -1.606 at 2,729.244. Volume was 13% below average (neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
2,732.1702,743.9652,724.0832,729.24411,138,746,368

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,687.27 2,759.00 3,087.40
Volatility: 18 21 21
Volume: 10,652,599,296 12,340,515,840 15,070,939,136

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.

Summary

SSE COMPOSITE is currently 11.6% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 0 periods.

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