Shanghai: SSE Composite Index (.SSEC) United States and China pressed ahead with their crunch talks on trade
Shares in China edged higher on Wednesday as the United States and China pressed ahead with their crunch talks on trade.
The Shanghai Composite Index settled 0.2 per cent higher at 2,761.22 points while the blue-chip CSI300 gained 0.4 per cent. CSI300’s financial sector sub-index gained 0.7 per cent, the consumer staples sector lost 0.5 per cent, while energy shares advanced 0.7 per cent. The smaller Shenzhen index edged up 0.3 per cent while the start-up board ChiNext Composite index rose 0.2 per cent.
Beijing and Washington started a new round of talks on Tuesday with sessions at a higher level later in the week. US tariffs on $200 billion in imports from China are set to rise to 25 per cent from 10 per cent if no deal is reached by March 1.
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 2,640.96.
The projected upper bound is: 2,835.89.
The projected lower bound is: 2,690.80.
The projected closing price is: 2,763.35.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 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 86.0648. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 1 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 72.13. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 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 109.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 buy 27 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 5.573 at 2,761.219. Volume was 53% above average (neutral) and Bollinger Bands were 32% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,692.30 2,588.86 2,759.49
Volatility: 21 18 24
Volume: 20,565,811,200 15,311,117,312 14,335,455,232
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 0.1% 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 21 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.