Shanghai: SSE Composite Index (.SSEC) Trump threatens tariffs on additional $267 bn of imports

Shanghai: SSE Composite Index (.SSEC) Trump threatens tariffs on additional $267 bn of imports

Shanghai: SSE Composite Index (.SSEC) Trump threatens tariffs on additional $267 bn of imports

Stocks in China fell on Monday morning as the threat of US tariffs on nearly all of China’s exports to the United States continued to hover over markets, and as a tweet from US President Donald Trump shook suppliers of tech giant Apple.

At the midday break, the Shanghai Composite index was down 17 points or 0.63 per cent to 2,685.30. China’s blue-chip CSI300 index was down 0.91 per cent, with its financial sector sub-index lower by 0.41 per cent, the consumer staples sector down 0.69 per cent and the real estate index up 1.68 per cent.

Chinese H-shares listed in Hong Kong fell 0.89 per cent at 10,465.61, while the Hang Seng Index was down 0.89 per cent at 26,733.86.

Trump had warned on Friday he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days.

China had said on Friday it will increase export tax rebates for 397 items ranging from some steel products to electronic ones, in a bid to boost the prospects for shipments amid its trade war with the United States.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,765.29.

The projected lower bound is: 2,569.44.

The projected closing price is: 2,667.36.

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 23 white candles and 27 black candles for a net of 4 black candles.

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 12.1672. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 7 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 38.04. 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 45 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 -145.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 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 2 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -32.816 at 2,669.485. Volume was 20% below average (neutral) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
2,698.0112,703.4282,667.3172,669.48510,355,916,800

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,724.93 2,774.69 3,114.56
Volatility: 15 22 21
Volume: 10,610,519,040 12,719,550,464 15,368,995,840

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 14.3% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 17 periods.

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