Shanghai SE Composite Index (SHCOMP) Consolidates Near Resistance at 3400, a Possible Breakout

Key Resistance Zones: 3300, 3400, 3500
Key Support Zones: 2800, 2700, 2600

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
SHCOMP is fluctuating between levels 3200 and 3400 since July. The bulls and bears are yet to break these key levels of the market. Today, price is testing the resistance at level 3400. A downward move to level 3200 will follow. This has been the market scenario since July.

Daily Chart Indicators Reading:
SHCOMP is at level 59 of the Relative Strength Index. The Index is in an uptrend zone and it is above the centerline 50. The 21-day SMA and 50-day SMA are sloping sideways indicating the sideways trend.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Ranging
On the 4- hour chart, the index is in a sideways move. The price is also fluctuating between levels 3200 and 3400 since July. The downtrend will resume if price breaks below level 3200. However, the market has continued its sideways move within the price range.

4-hour Chart Indicators Reading
SHCOMP is below 80 % range of the daily stochastic. It indicates that the market is in a bearish momentum. The 21-day SMA and the 50-day SMA are sloping sideways indicating the sideways trend.


General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP index is still trading between levels 3200 and 3400. For the second month, the index is still fluctuating in a range. Presently, the market is consolidating near the resistance at level 3400. A break above the resistance will mean the resumption of the uptrend.


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