Shanghai SE Composite Index (SHCOMP) Breaks Resistance at Level 3450, May Resume up Trending

Key Resistance Zones: 3300, 3400, 3500
Key Support Zones: 2800, 2700, 2600

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Bullish
SHCOMP is in an upward move. The index has broken the previous level and it is attempting to move up to level 3500. This current move will continue as the RSI is at level 63.

Daily Chart Indicators Reading:
SHCOMP has risen to level 63 of the Relative Strength Index period 14. The index is in the uptrend zone and above the centerline 50. The 21-day SMA and 50-day SMA are sloping sideways indicating the sideways trend.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Bullish
On the 4- hour chart, the market is moving upward. A bullish trend line is drawn showing the support levels of the market. The index will continue to rise as long as the trend line remains unbroken. On December 27 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that SHCOMP will rise and reach level 2.0 Fibonacci extension. That is the high of 3476.990.

4-hour Chart Indicators Reading
SHCOMP is above the 80% range of daily stochastic. It indicates that the market is in a bullish momentum and has reached the overbought region. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP is in an upward move. Since July, the market has been fluctuating between levels 3200 and 3450. SHCOMP will be out of the sideways move if the current bullish momentum is sustained above the resistance level.


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