Shanghai: SSE Composite Index (.SSEC) Xi’s speech disappoints; focus now on policy meeting

Shanghai: SSE Composite Index (.SSEC) Xi’s speech disappoints; focus now on policy meeting

Shanghai: SSE Composite Index (.SSEC) Xi’s speech disappoints; focus now on policy meeting

Chinese stocks ended lower on Tuesday after President Xi Jinping offered no specific support measures for the economy in a closely watched speech marking 40 years of market liberalisation, adding to pressure from faltering shares in other Asian markets and the United States on concerns about global economic growth.

The Shanghai Composite index was down 0.8 percent at 2,576.65, while the blue-chip CSI300 index lost 1 percent.  Xi called on Tuesday for the unswerving implementation of reforms on Beijing’s terms but offered no new specific measures.  Some in the market were expecting a big announcement on fiscal policy loosening and a tax cut of as much as 5 trillion yuan ($724.80 billion) in the next five years, said an analyst with a Chinese broker who asked not to be named.

Overall, the bias in prices is: Downwards

The projected upper bound is: 2,696.48.

The projected lower bound is: 2,451.05.

The projected closing price is: 2,573.76.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 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 24.4300. This is not an overbought or oversold reading. The last signal was a buy 4 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 43.83. 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 42 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 -88. This is not a topping or bottoming area. The last signal was a buy 14 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 2 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -21.324 at 2,576.649. Volume was 18% below average (neutral) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
2,583.6342,599.1482,563.5732,576.64911,703,336,960

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

Moving Averages: 10-period 50-period 200-period
Close: 2,604.41 2,612.89 2,880.64
Volatility: 17 30 24
Volume: 12,543,383,552 16,313,473,024 14,386,726,912

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 10.6% below its 200-period moving average and is in an downward trend. Volatility is low 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 5 periods.

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