Shanghai SE Composite Index (SHCOMP) Continues Downward Move, May Reverse at Level 3187

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

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
SHCOMP is range-bound between levels 3200 and 3400 since July. Presently, the index is falling and may soon end the bearish run to level 3187. This means that the lower price range is likely to be broken but the price will revert to the range-bound zone.

Daily Chart Indicators Reading:
SHCOMP has fallen to level 45 of the Relative Strength Index period 14. The index is in the downtrend 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: Bearish
On the 4- hour chart, the index is in a downward move. The price retested level 3360 to resume the downward move. On October 26 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. This implies that SHCOMP will fall and reach the level 1.272 Fibonacci extension level. That is the low of 3187.19.

4-hour Chart Indicators Reading
SHCOMP is above the 30 % range of the daily stochastic. It indicates that the market is in a bullish momentum. Besides, the market has reached the oversold region. The 21-day SMA and the 50-day SMA are sloping sideways indicating the sideways trend.


General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP is on a downward move. The current downward move is reaching bearish exhaustion. According to the Fibonacci tool, the market will fall and reach level 3187.19.




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