Shanghai SE Composite Index (SHCOMP) Consolidates but slides Below 2800

Key Resistance Zones: 3100, 3200, 3300
Key Support Zones: 2700, 2600, 2500

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
The SHCOMP index is still in a range-bound movement between levels of 2800 and 3100. On March 18, the price broke the lower price range and reached a low of 2700. The index is oversold at the 2700 price level. We expect the bulls to range at the oversold region as the market moves up to the range-bound zone.

Daily Chart Indicators Reading:
The 21-day and 50-day SMA are sloping horizontally indicating the sideways trend. The index has fallen below a 20% range of the daily stochastic. This indicates that the market was in an oversold region.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Ranging
On the 4- hour chart, the index is in a sideways trend. The bulls have trading below 3100 overhead resistance. The bulls have made three unsuccessful attempts at the overhead resistance. The market falls to the low of 2700 or 2900 each it tested the overhead resistance.

4-hour Chart Indicators Reading
The index is currently at level 27 of the Relative Strength Index period 14. The index is in the oversold region. The market expects the buyers to image to push the index upward The 21-day SMA and the 50-day SMA are sloping horizontally.

General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP Index is still trading in a sideways trend. The index is not trending as the market remains constant without any significant price movement. The index is still confined between 2800 and 3100. Range bound traders can trade ranging markets.

Instrument: Shanghai SE Composite Index (SHCOMP)
Order: Buy
Entry price: 2745
Stop: 2800
Target: 3100

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