US and Chinese Shanghai: SSE Composite Index (.SSEC) trade negotiators will meet in Washington this week with less than a fortnight left to hammer out a deal
US and Chinese trade negotiators will meet in Washington this week with less than a fortnight left to hammer out a deal aimed at ending their trade impasse and finding common ground on the thorny issues of state subsidies and intellectual property protection.
China’s president Xi Jinping said “progress” had been made at last week’s high-level talks in Beijing, while US president Donald Trump indicated over the weekend he was open to extending a March 1 deadline he set more than two months ago to negotiate a permanent truce in his trade war with China.
“I have repeatedly said that China and the United States cannot be separated from one another. Only through cooperation can a win-win situation be attained, and confrontation will certainly lead to a lose-lose scenario,” Mr Xi was quoted as saying by the state-run Xinhua news agency in a rare public comment on the trade talks.
Mr Xi met with US president Donald Trump’s top negotiating team in Beijing after two days of talks concluded on Friday, with positive rhetoric from both sides but little sign of any real progress. Still, global markets were heartened by the comments out of Beijing and Washington. Australian stocks are expected to open higher on Monday, with ASX futures up 53 points.
The Wall Street Journal cited sources close to the talks saying some progress had been made in sketching out a memorandum of understanding, which would be the framework for a deal finalised at a summit between Mr Trump and Mr Xi at an unspecified data.
The agreement would cover Beijing’s promise to buy more US goods, open up sectors to more foreign investment and improve the protection of US companies’ intellectual property.
Investors in Australia and around the globe will be watching the talks closely for any sign of an end to the deadlock. Both economies are threatened if talks break down and Mr Trump follows through with threats to further increase tariffs on Chinese goods after March 1.
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 2,621.29.
The projected upper bound is: 2,757.68.
The projected lower bound is: 2,610.31.
The projected closing price is: 2,684.00.
A black body occurred (because prices closed lower 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 29 white candles and 21 black candles for a net of 8 white 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 84.7005. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 63.64. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 106.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 buy 24 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -37.315 at 2,682.385. Volume was 25% above average (neutral) and Bollinger Bands were 1% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,641.86 2,579.65 2,764.48
Volatility: 18 18 24
Volume: 16,851,918,848 14,730,161,152 14,162,782,208
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 3.0% below 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 18 periods.
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