Shanghai SE Composite Index (SHCOMP) Breaches More Resistance, Battles New Uptrend

Shanghai SE Composite Index (SHCOMP) Breaches More Resistance, Battles New Uptrend

Key Resistance Levels: 2900, 3000, 3100
Key Support Levels: 2800, 2700, 2600

Shanghai SE Composite Index (SHCOMP) Price Long-term Trend: Bullish
The SHCOMP is currently in a horizontal channel. Since on June 1, the index has been rising and has broken above the EMAs. This is an indication of a further upward move. Meanwhile, the market is consolidating above level 2900 support. The upward movement will continue if the current support holds.

SHCOMP – Daily Chart

Daily Chart Indicators Reading:
The 50-day SMA and 21-day SMA are sloping horizontally indicating the sideways move.SHCOMP is at level 63 of the Relative Strength Index period 14. This indicates that the market is in the uptrend zone and likely to rise.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Bullish
On the 4 hour chart, the index is in an ascending channel. It has already broken the previous resistance at 2900. There is a possibility of a further upward move if the momentum is sustained. It is expected for the market to reach a high of level 3000.

SHCOMP – 4 Hour Chart

4-hour Chart Indicators Reading
SHCOMP index is currently above 80% range of the daily Stochastic. The index is in a bullish momentum and it is likely to rise. The brief downtrend has been exhausted. The index is resuming an upward move in the overbought region.

General Outlook for Shanghai SE Composite Index (SHCOMP)
The SHCOMP index is still on a sideways move. In other words, the market is fluctuating as there is no clear uptrend. In the meantime, SHCOMP is going up to reach the targeted price. As soon as there is resistance, the range movement will resume.

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Author : Azeez Mustapha


Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.