Shanghai: SSE Composite Index (.SSEC) various news reports point to a possible easing of tensions

Shanghai: SSE Composite Index (.SSEC) various news reports point to a possible easing of tensions

Shanghai: SSE Composite Index (.SSEC) various news reports point to a possible easing of tensions

Asia stocks closed in positive territory on Wednesday after various news reports pointed to an easing in tensions between the U.S. and China.

Reports emerged in the U.S. overnight that China was moving to cut import tariffs on cars made in the U.S. from 40 percent to 15 percent — that news boosted auto stocks stateside and in Asia. News that Huawei’s chief financial officer Meng Wanzhou was granted bail by Canada also added to the positive sentiment.

China had initially cut import tariffs for all foreign-made cars and car parts from 25 percent to 15 percent in July this year. However, Beijing subsequently raised tariffs on automobiles imported from the U.S. to 40 percent amid escalating tensions with Washington.

Greater China markets were cheered by the developments. The Shanghai composite inched up 0.31 percent to end the day at 2,602.1526 and the Shenzhen composite closed 0.159 percent higher at 1,346.0308. Hong Kong’s Hang Seng Index gained some 1.6 percent in late trading.

Overall, the bias in prices is: Downwards

By the way, prices are vulnerable to a correction towards 2,694.81.

The projected upper bound is: 2,726.91.

The projected lower bound is: 2,469.21.

The projected closing price is: 2,598.06.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 22.5115. This is not an overbought or oversold reading. The last signal was a buy 0 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 47.10. 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 38 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 -6. This is not a topping or bottoming area. The last signal was a buy 10 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 1 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 8.064 at 2,602.153. Volume was 28% below average (neutral) and Bollinger Bands were 24% narrower than normal.

Open High Low Close Volume___
2,608.1142,610.0092,595.0752,602.15310,351,830,016

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

Moving Averages: 10-period 50-period 200-period
Close: 2,611.81 2,625.85 2,894.06
Volatility: 22 31 24
Volume: 13,951,783,936 16,300,441,600 14,407,895,040

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 10.1% below 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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