Shanghai SE Composite Index (Shcomp) Is in a Downward Move After Rejection at Level 3400

Shanghai SE Composite Index (Shcomp) Is in a Downward Move After Rejection at Level 3400

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

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
SHCOMP has not been trending since July as it continues its sideways move between levels 3200 and 3400. Today, the index is falling after rejection at the 3400 resistance. The price will fall to the lower price range and resume upward.

SHCOMP – Daily Chart

Daily Chart Indicators Reading:
SHCOMP has fallen to level 50 of the Relative Strength Index period 14. The index is at par with the centerline 50. That is, there is a balance between supply and demand. 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. On October 23 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement. This retracement indicates that SHCOMP will fall and reach level 1.272 Fibonacci extensions. That is the low of level 3187.18

SHCOMP – 4 Hour Chart

4-hour Chart Indicators Reading
SHCOMP is below the 50% range of the daily stochastic. It indicates that the market is in bearish momentum. The 21-day SMA and the 50-day SMA are sloping sideways indicating the original trend.



General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP is in a sideways trend but the index is falling to the lower price range at level 3200. The market is expected to move up to commence the range-bound movement. According to the Fibonacci tool, the market will fall and reverse at level 1.272 or 3187.18 low


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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.