Shanghai SE Composite Index (SHCOMP) Consolidates in a Tight Range, downward move likely

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

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
SHCOMP is consolidating between levels 3200 and 3400 since July. Since July, it has been fluctuating in a tight range. The key levels of the market are yet to be broken as price continues to consolidate.

Daily Chart Indicators Reading:
SHCOMP is at level 41 of the Relative Strength Index. The Index is in a downtrend zone and it is below 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: Ranging
On the 4- hour chart, the index is in a range bound move. The market is in a sideways trend. The price is fluctuating towards the lower price range. The index has been trapped between levels 3200 and 3400. The price is yet to break the key levels of the market.

4-hour Chart Indicators Reading
SHCOMP is below 20 % range of the daily stochastic. It indicates that the market is in a bearish momentum. The 21-day SMA and the 50-day SMA are sloping sideways indicating the sideways trend. The index is now in an oversold region of the market.


General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP index is still trading between levels 3200 and 3400 since July. The market is on a downward move. If price breaks below the support line, the index may resume a downtrend



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