Shanghai SE Composite Index (SHCOMP) Fluctuates, Faces Resistance at 2850

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

Shanghai SE Composite Index (SHCOMP) Price Long-term Trend: Ranging
The SHCOMP index has been in a sideways move between 2850 and 3100. In March, the price fell to  level 2650 ad then resumed an upward move. The bulls could not break above the lower price range as price fell to the support of the 21-day SMA. The index will move up to the range-bound zone if the 21-day SMA support holds. The index may continue the downward move, if the support cracks.

Daily Chart Indicators Reading:
Presently, index is at level 47 of the Relative Strength Index period 14. This indicates that the market is in a downtrend. The index may continue its fall. The 50-day SMA and 21-day SMA are sloping sideways indicating the sideways move.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Ranging
In April, the index is in an upward move, but it is currently facing resistance at 2850. The bulls are attempting to break above 2850 but were repelled. The price is falling after the bulls fail to break above the lower price range. The market is falling, if price breaks below SMAs, the downtrend will extend to the low of 2700.

4-hour Chart Indicators Reading
SHCOMP index is currently below 50% range of the Stochastic. It indicates that the market is in a bearish momentum. The SMAs are sloping in sideways move indicating the sideways trend.

General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP has been in a downtrend in March and it fell into an oversold region. Buyers emerge immediately as the index resumed upward movement in April. The upward move has been terminated by the resistance at 2850.

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