Shanghai SE Composite Index (SHCOMP) May Resume Downward After Retesting Level 3420

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

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
SHCOMP is in a downward move after testing level 3460. On December 11 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that SHCOMP will fall to level 2.0 Fibonacci extensions. That is the index will reach level 3181.054.

Daily Chart Indicators Reading:
SHCOMP has risen to level 53 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 a downward move. On December 10 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the index will decline to level 2.0 Fibonacci extensions or level 3181.054.

4-hour Chart Indicators Reading
SHCOMP is above the 70% range of 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 is in a downward move. Possibly, it is making a retest at the recent high before resuming downward. According to the Fibonacci tool, the downtrend is expected to reach level 3181.054.


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