Shanghai: SSE Composite Index (.SSEC) Waiting On Data
Ahead of Friday’s holiday for the Mid-Autumn Festival, the China stock market had halted the two-day slide in which it had fallen more than 15 points or 0.5 percent. The Shanghai Composite Index now rests just above the 3,030-point plateau and it’s looking at a narrow trading range on Monday.
The global forecast for the Asian markets is mixed and flat amid a lack of catalysts, although sliding crude oil prices may weigh. The European markets were slightly higher and the U.S. markets were mostly lower – and the Asian markets are tipped to follow the latter lead.
The SCI finished modestly higher on Thursday as gains from the properties and financials were capped by weakness from the oil companies.
For the day, the index gained 22.43 points or 0.75 percent to finish at 3,031.24 after trading between 3,005.19 and 3,033.47. The Shenzhen Composite Index perked 9.69 points or 0.58 percent to end at 1,681.23.
The Dow added 37.07 points or 0.14 percent to 27,219.52, while the NASDAQ fell 17.75 points or 0.22 percent and the S&P 500 lost 2.18 points or 0.07 percent to 3,007.39. For the week, the Dow gained 1.6 percent, the NASDAQ rose 0.9 percent and the S&P was up 1 percent.
The choppy trading on Wall Street came as the major averages encountered some resistance as they climbed back within striking distance of the record highs set in July.
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 2,939.74.
The projected upper bound is: 3,109.74.
The projected lower bound is: 2,959.02.
The projected closing price is: 3,034.38.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
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 77.7802. This is not an overbought or oversold reading. The last signal was a sell 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 70.83. 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 2 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 93. This is not a topping or bottoming area. The last signal was a sell 1 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 20 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 2.684 at 3,033.919. Volume was 35% below average (neutral) and Bollinger Bands were 3% 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: 2,991.70 2,904.65 2,862.86
Volatility: 10 17 24
Volume: 21,735,688,192 17,115,475,968 22,814,607,360
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 6.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 15 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.