Shanghai: SSE Composite Index (.SSEC) White House denies done deal

Shanghai: SSE Composite Index (.SSEC) White House denies done deal

Shanghai: SSE Composite Index (.SSEC) White House denies done deal

Stocks in China ended their four sessions of gaining streak on Monday as participants awaited the outcome of the U.S. mid-term elections, which may change the White House’s policy direction on trade. Investors also tried to make sense of the Chinese president’s announcement of launching a science and innovation board on Shanghai Stock Exchange.

The main Shanghai stock market ended 0.4 percent weaker at 2665.43, while its main blue-chip Shanghai Shenzhen CSI 300 index closed down 0.8 percent on the day.

The largest percentage losses in the Shanghai index were Jiangsu Hongtu High Technology Co Ltd down 10.1 percent, followed by Eastern Gold Jade Co Ltd losing almost 10 percent, and Zhejiang Hugeleaf Co Ltd, which was down by 7.5 percent. ** So far this year, the Shanghai stock index is down 19.4 percent, the CSI300 has also fallen 19 percent.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,793.63.

The projected lower bound is: 2,537.09.

The projected closing price is: 2,665.36.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 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 90.1961. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 11 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 53.21. 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 11 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 122.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 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 7 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -11.046 at 2,665.431. Volume was 45% above average (neutral) and Bollinger Bands were 8% narrower than normal.

Open High Low Close Volume___
2,665.4272,673.1882,639.2712,665.43119,376,009,216

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

Moving Averages: 10-period 50-period 200-period
Close: 2,606.18 2,678.28 3,001.42
Volatility: 27 31 25
Volume: 17,605,386,240 13,185,931,264 15,117,949,952

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 11.2% below its 200-period moving average and is in an downward 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 bearish on .SSEC and have had this outlook for the last 16 periods.

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