Shanghai SE Composite Index (SHCOMP) Retests Level 3470 and Pulls Back, Sellers Are Likely To Emerge

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. Since December 2 the bulls tested level 3470 and pulled back. The index will rise to level 3560 if the current resistance is breached. Meanwhile, the range-bound levels are yet to be broken convincingly.

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. On November 9 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the index will rise and reach level 2.0 Fibonacci extensions or level 3569.482.

4-hour Chart Indicators Reading
SHCOMP is above the 80% range of the daily stochastic. 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. Presently, the index has reached the overbought region. There is a likelihood of sellers emerging. Besides, the index has continued to be range-bound since June.



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