Shanghai SE Composite Index (SHCOMP) Is in an Overbought Region, Faces Rejection at Level 3600

Key Resistance Zones: 3500, 3600, 3700
Key Support Zones: 2800, 2700, 2600

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Bullish
SHCOMP is in an upward move. The index rallied to level 3600 and pulled back. SHCOMP has fallen and it is resuming upward, retesting the resistance level. A break above the resistance will mean an upward movement of the index.

Daily Chart Indicators Reading:
SHCOMP has risen to level 62 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 upward indicating the upward.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Bullish
On the 4- hour chart, the index is in an upward move. On January 13 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that SHCOMP will rise and reverse at level 1.272 Fibonacci extensions. That is the high of level 3686.01.

4-hour Chart Indicators Reading
SHCOMP is below the 80% range of daily stochastic. 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. The index has reached the overbought region of the market. It is facing rejection at the recent high. According to the Fibonacci tool, the market will reverse at level 1.272 or 3686.01 high.

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