SSE Composite Index (.SSEC) still under pressure
China stocks were lower after the close on Wednesday, as losses in the Software & Computer Services, Retailers and Technology sectors led shares lower.
At the close in Shanghai, the Shanghai Composite declined 0.94% to hit a new 52-week low, while the SZSE Component index lost 2.02%.
The best performers of the session on the Shanghai Composite were Jien Nickel (SS:600432), which rose 10.43% or 0.120 points to trade at 1.270 at the close. Meanwhile, Zhejiang Tuna Environmental Science & Technology Co Ltd (SS:603177) added 10.03% or 1.36 points to end at 14.92 and Shanghai Phoenix Enterprise Group Co Ltd A (SS:600679) was up 10.03% or 1.130 points to 12.400 in late trade.
The worst performers of the session were GuangYuYuan Chinese Herbal Medicine Co Ltd (SS:600771), which fell 10.00% or 5.370 points to trade at 48.310 at the close. China United Travel Co Ltd (SS:600358) declined 10.00% or 0.51 points to end at 4.59 and Neway Valve Suzhou Co Ltd (SS:603699) was down 9.99% or 1.270 points to 11.440.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 3,016.76.
The projected upper bound is: 2,852.49.
The projected lower bound is: 2,653.27.
The projected closing price is: 2,752.88.
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 23 white candles and 27 black candles for a net of 4 black 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 33.7463. This is not an overbought or oversold reading. The last signal was a buy 3 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 27.26. This is where it usually bottoms. 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 buy 3 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 -99. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 27 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -27.762 at 2,759.126. Volume was 16% below average (neutral) and Bollinger Bands were 91% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,823.85 3,051.84 3,260.44
Volatility: 23 21 18
Volume: 13,046,037,504 13,385,069,568 16,596,180,992
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 15.4% 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 moderate flows of volume out of .SSEC (mildly bearish). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 23 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.