Shanghai SE Composite Index (SHCOMP) Is in a Strong Uptrend as Bulls Overwhelm Bears

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

Shanghai SE Composite Index (SHCOMP) Price Long-term Trend: Bullish
The SHCOMP is currently in a horizontal channel. The bulls have broken above the upper price range. The index has risen and it is approaching level 3200. The market is currently in the overbought region where sellers emerge to push prices down. In a trending market, overbought conditions may not hold.

Daily Chart Indicators Reading:
The 50-day SMA and 21-day SMA are sloping upward indicating the upward move. SHCOMP is at level 81 of the Relative Strength Index period 14. This indicates that the market is in the overbought region. The price action is indicating bullish signals. Sellers are not likely to emerge.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Bullish
On the 4 hour chart, the index is in an uptrend. A bullish trend line is drawn showing the support levels of price. The uptrend is likely to continue as price action indicates bullish signals

4-hour Chart Indicators Reading
SHCOMP index is currently above 80% range of the daily Stochastic. The index is now in the overbought region. Sellers are yet to emerge at the overbought region as the index is rising. The index is in a bullish momentum and it is rising. The 50-day SMA and 21-day SMA are sloping horizontally indicating the upward move.


General Outlook for Shanghai SE Composite Index (SHCOMP)
The SHCOMP index is in a strong uptrend as it breaks the previous resistance level. The price has broken the upper price range and closed it. The implication is that the uptrend will continue.



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