Shanghai SE Composite Index (SHCOMP) Falls at Level 3446.547, Makes Upward Correction

Updated:

Key Resistance Zones: 3500, 3600, 3700
Key Support Zones: 2800, 2700, 2600

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Bearish
SHCOMP is in a downward move after it was repelled at the overbought region. On January 21 and 25, the price tested level 3640 twice and was repelled. The index fell to the low of level 3440 and pulled back. The long candlestick tail above level 3440 indicates strong buying pressure at a lower level.

SHCOMP – Daily Chart

Daily Chart Indicators Reading:
SHCOMP has fallen to level 44 of the Relative Strength Index period 14. The index is in the downtrend zone and below the centerline 50. The 21-day SMA and 50-day SMA are sloping upward indicating the upward.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Bearish
On the 4- hour chart, the index is in a downward move. On January 27 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that SHCOMP will rise and reverse at level 1.272 Fibonacci extensions. The price action has fallen beyond the reversal level.

SHCOMP – 1 Hour Chart

1-hour Chart Indicators Reading
SHCOMP is below the 20% range of daily stochastic. The index has fallen to the oversold region. Buyers are expected to emerge in the oversold region. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend.

General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP has fallen to the oversold region. The downtrend has reached bearish exhaustion. The index has fallen to level 3455 as the price makes an upward correction. The market will resume upward if the current support holds.



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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.