Shanghai: SSE Composite Index (.SSEC) Trump says U.S. could impose more tariffs if needed

Shanghai: SSE Composite Index (.SSEC) Trump says U.S. could impose more tariffs if needed

Shanghai: SSE Composite Index (.SSEC) Trump says U.S. could impose more tariffs if needed

Shares in China finished lower in thin trade on Wednesday, extending the previous day’s small losses as investors continued to fret over slowing growth and the impact of the Sino-U.S. trade dispute, and await more signs of support from Beijing.

At the close, the Shanghai Composite index was down 0.2% at 2,931.69. Trading volumes were relatively light, with about 14.96 billion shares traded on the Shanghai exchange, roughly 76.6% of the market’s 30-day moving average of 19.54 billion shares a day.

The blue-chip CSI300 index was down 0.06%, with its financial sector sub-index lower by 0.18%, the consumer staples sector down 0.16%, the real estate index up 0.63% and the healthcare sub-index up 0.08%.

The smaller Shenzhen index ended up 0.16% and the start-up board ChiNext Composite index was higher by 0.32%.

Reviving concerns over trade negotiations, U.S. President Donald Trump said on Tuesday the United States still has a long way to go to conclude a trade deal with China, but could impose tariffs on an additional $325 billion worth of Chinese goods if it needed to do so.

The United States did not fully comply with a World Trade Organization ruling and could face Chinese sanctions if it does not remove certain tariffs that break WTO rules, the WTO’s appeals judges said in a ruling on Tuesday. 

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 2,956.98.

The projected upper bound is: 3,030.85.

The projected lower bound is: 2,832.74.

The projected closing price is: 2,931.80.

Candlesticks

A black body occurred (because prices closed lower 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 25 white candles and 25 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 73.8871. This is not an overbought or oversold reading. The last signal was a buy 2 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 45.92. 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 47 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 -55. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 7 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -5.924 at 2,931.693. Volume was 46% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open High Low Close Volume___
2,933.0232,942.0672,924.4592,931.69314,963,161,088

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

Moving Averages: 10-period     50-period     200-period
Close: 2,945.30 2,924.97 2,810.85
Volatility: 16 22 27
Volume: 15,738,800,128 20,222,175,232 22,585,509,888

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 4.3% above its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 1 periods.

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