Shanghai SE Composite Index (SHCOMP) Fluctuates Between Levels 3200 and 3400,May Retest 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 been fluctuating between levels 3200 and 3400 since July. The index range bound movement has been consistent in the last three months. The range-bound levels are yet to be broken. The market is an upward move but will reverse after testing the upper price range.

Daily Chart Indicators Reading:
SHCOMP has risen to level 60 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 an upward move. On November 9 uptrend, a retraced candle body tested the 50% Fibonacci retracement level. It indicates that SHCOMP will rise and reach level 2.0 Fibonacci extensions or the high of 3563.524.

4-hour Chart Indicators Reading
SHCOMP is above the 80% range of the daily stochastic bands are sloping upward. It indicates that the market is in a bullish momentum. The index is also in 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 a sideways trend but the index is rising upward. It is also approaching the overbought region of the market. At the overbought region, the index is likely to reverse because it is in a sideways trend.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results