Shanghai: SSE Composite Index (.SSEC) weaker than expected Chinese loan and money supply data raised expectations of further action to spur the slowing economy

Shanghai: SSE Composite Index (.SSEC) weaker than expected Chinese loan and money supply data raised expectations of further action to spur the slowing economy

Shanghai: SSE Composite Index (.SSEC) weaker than expected Chinese loan and money supply data raised expectations of further action to spur the slowing economy

Shares were mostly higher in Asia on Monday as investors awaited further developments in trade talks between the U.S. and China.

The Shanghai Composite jumped 1.9 percent to 3,026.99 and the Hang Seng in Hong Kong gained 0.9 percent to 28,494.76. Japan’s Nikkei 225 index added 0.5 percent to 21,125.09 and the S&P ASX 200 in Australia slipped 0.4 percent to 6,180.20.

Weaker than expected Chinese loan and money supply data raised expectations of further action to spur the slowing economy. The 885.8 billion yuan ($132 billion) in new loans in February reported Monday was below forecasts and much lower than the 3.23 trillion yuan in new lending in January.

Elsewhere in Asia, India’s Sensex surged 0.9 percent to 37,002.36 while South Korea’s Kospi was flat at 2,138.10. Shares were lower in Singapore but rose in Jakarta, Bangkok and Taipei.

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 2,809.92.

The projected upper bound is: 3,152.78.

The projected lower bound is: 2,920.83.

The projected closing price is: 3,036.81.

Candlesticks

A white body occurred (because prices closed higher 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 33 white candles and 17 black candles for a net of 16 white 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 45.5047. This is not an overbought or oversold reading. 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 66.82. 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 sell 1 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 42. 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 40 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 57.131 at 3,026.992. Volume was 107% above average (neutral) and Bollinger Bands were 153% wider than normal.

Open High Low Close Volume___
2,969.0803,028.2542,963.5833,026.99242,621,304,832

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

Moving Averages: 10-period 50-period 200-period
Close: 3,011.75 2,685.64 2,749.12
Volatility: 34 26 26
Volume: 48,292,110,336 23,926,106,112 16,458,735,616

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% 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 34 periods.

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