Key Support Zones: 2700, 2600, 2500
Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
Generally, the SHCOMP index has been in a sideways trend since May 2019. In November and December 2019 the index was in the oversold region as buyers emerge to push the market upward. In January, the price went up to reach the overbought region. The overbought and oversold regions of the market make the index to fluctuate. In the last 24 hours, the price reached a high of 3068 and was overbought. Incidentally, the sellers will emerge to push price downward.
Daily Chart Indicators Reading:
Presently, SHCOMP is above 75% range of daily stochastic. This indicates that the index is in bullish momentum. The 21-day and 50-day SMAs are sloping horizontally indicating the sideways trend.
Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Ranging
On the 4- hour chart, the index is in a sideways trend. The market is ranging between 2800 and 3100. The price in the lower time frame fluctuates in a tight range.
4-hour Chart Indicators Reading
The index is currently at level 56 of the Relative Strength Index period 14. The index is likely to rise as it is above the centerline 50. The 21-day SMA and the 50-day SMA are sloping horizontally.
General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP Index seems to be range-bound. The index faces resistance at 3100 while it finds support at 2800. Traders should trade the key levels since the index is in a sideways trend. In a nutshell, a short trade should be taken at the peak price of 3100. Similarly, a long trade should be taken at the support of 2800.
Instrument: Shanghai SE Composite Index (SHCOMP)
Order: Sell
Entry price: 3034
Stop: 3100
Target: 2800
Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
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