Shanghai: SSE Composite Index (.SSEC) U.S.-Sino standoff has proven a distraction

Shanghai: SSE Composite Index (.SSEC) U.S.-Sino standoff has proven a distraction

Shanghai: SSE Composite Index (.SSEC) U.S.-Sino standoff has proven a distraction

Expectations around a trade deal between China and the U.S. are on the rise, but fixing that strained relationship won’t be enough to solve China’s growth conundrum or address the problem of rising funding costs for emerging-market economies, one analyst says.

President Donald Trump and President Xi Jingping are expected to meet during the G-20 summit in Buenos Aires later this month to talk trade, among other things. Last week Trump told Fox News that there was potential for a “great deal with China,” and tweeted that he had a “long and very good conversation” about trade with the Chinese leader.

Last month’s release third quarter GDP numbers showed that China’s economy grew less than expected — 6.5% — and at its slowest pace since the financial crisis. The idea of a slowing Chinese growth figure has long been a concern of investors across asset classes, but renewed worries also come on the coattails of rising trade and budget deficits in the U.S. and sluggish economic data out of Europe. Together this paints a bleak picture for global growth.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,786.23.

The projected lower bound is: 2,530.91.

The projected closing price is: 2,658.57.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 93.2753. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 12 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 52.50. 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 12 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 96. This is not a topping or bottoming area. The last signal was a sell 0 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 8 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -6.074 at 2,659.356. Volume was 22% above average (neutral) and Bollinger Bands were 15% narrower than normal.

Open High Low Close Volume___
2,660.7192,660.8632,635.3212,659.35616,366,948,352

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

Moving Averages: 10-period 50-period 200-period
Close: 2,612.64 2,677.50 2,997.67
Volatility: 23 31 25
Volume: 17,458,644,992 13,291,702,272 15,081,702,400

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 11.3% below its 200-period moving average and is in an upward trend. Volatility is high 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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