Shanghai SE Composite Index (SHCOMP) in an Upward Move, Faces Resistance at Level 2895

Shanghai SE Composite Index (SHCOMP) in an Upward Move, Faces Resistance atLevel 2895

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

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

Shanghai SE Composite Index (SHCOMP) Price Long-term Trend: Ranging
Presently, the index is rising and it is approaching the high of level 2895. Previously, the price has been fluctuating between levels 2800 and 3100. The market fell in March as the lower price range was broken to the low of 2656. At this lower, the market resumed upward move. In April, the market was characterized by small body candlesticks like Doji and Spinning tops. This candlestick explains that buyers and sellers are undecided about the direction of the market.

Daily Chart Indicators Reading:
SHCOMP is at level 60 of the Relative Strength Index period 14. This indicates that the market is rising as it is an uptrend zone. The 50-day SMA and 21-day SMA are sloping sideways indicating the sideways move.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Ranging
On the 4 hour chart, the market is also in a sideways move between 2800 and 3100. Price is currently at level 2895 which have reached the overbought region. The index may fall as sellers are likely to emerge.

4-hour Chart Indicators Reading
SHCOMP index is currently above 80% range of the Stochastic. That is the market is in the overbought region. It is in a strong bullish momentum. The SMAs are sloping in sideways to move to indicate the sideways trend.

General Outlook for Shanghai SE Composite Index (SHCOMP)
The market is still rising as it enters the range-bound zone. Prices tend to rise to retest the upper price range. SHCOMP index is showing bearish signal as the market reached the overbought region. In a trending market, the overbought condition may not hold.

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