Shanghai: SSE Composite Index (.SSEC) weak earnings and an uncertain economic outlook outweighing government pledges

Shanghai: SSE Composite Index (.SSEC) weak earnings and an uncertain economic outlook outweighing government pledges

Shanghai: SSE Composite Index (.SSEC) weak earnings and an uncertain economic outlook outweighing government pledges

China stocks ended a volatile session lower, with weak earnings and an uncertain economic outlook outweighing government pledges of support for wavering markets.

At the close, the Shanghai Composite Index was 0.7 percent lower at 2,641.34 points.

The blue-chip CSI300 index also lost 0.7 percent, with its financial sector sub-index falling 0.89 percent. The consumer staples sector was up 0.03 percent while the real estate index was down 1.08 percent and the healthcare sub-index was down 0.54 percent.

So far this year, the Shanghai stock index is down 20.1 percent, the CSI300 has fallen 20.1 percent while China’s H-share index listed in Hong Kong is down 9.1 percent. Shanghai stocks have risen 1.48 percent this month.

About 17.32 billion shares were traded on the Shanghai exchange, roughly 113.9 percent of the market’s 30-day moving average of 15.20 billion shares a day. The volume in the previous trading session was 16.37 billion.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,766.40.

The projected lower bound is: 2,512.59.

The projected closing price is: 2,639.49.

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 81.2148. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 13 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 50.37. 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 13 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 90. This is not a topping or bottoming area. The last signal was a sell 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 buy 9 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -18.014 at 2,641.342. Volume was 29% above average (neutral) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
2,659.8442,675.6772,639.2462,641.34217,320,198,144

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

Moving Averages: 10-period 50-period 200-period
Close: 2,616.44 2,675.65 2,993.80
Volatility: 24 30 25
Volume: 17,590,061,056 13,410,932,736 15,072,559,104

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 11.8% 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 1 periods.

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