Shanghai SE Composite Index (SHCOMP) Fluctuates Above Level 3600, May Face Rejection

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 upward move is facing resistance at level 3600. The bulls are making frantic efforts to break above the resistance but to no avail. The index is trading below the resistance. It may face rejection at the overbought region.

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 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 been trading marginally. SHCOMP will pullback each time it retests the level 3600 resistance. The market is expected to resume downward.


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