Shanghai SE Composite Index (SHCOMP) Is in a Sideways Trend, Retests Level 3400

Shanghai SE Composite Index (SHCOMP) Is in a Sideways Trend, Retests 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 price has risen to the upper price range. In a ranging market, the price will retest the upper and lower price range to resume the range-bound movement. Since July the range-bound levels have not been broken.

SHCOMP – Daily Chart

Daily Chart Indicators Reading:
SHCOMP has risen to level 55 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 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. The market is in a choppy price action. Presently, the price is approaching the resistance zone. After hitting the resistance zone, the price will resume downward. This has been the market scenario,

SHCOMP – 4 Hour Chart

4-hour Chart Indicators Reading
SHCOMP is above the 40% range of the daily stochastic bands are sloping upward. It indicates that the market is in a bullish momentum. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP has continued to fluctuate in a confined range. The range-bound level is yet to be broken. Today, the market has reached level 3406 and the upward move may terminate above level 3400.



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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.