Shanghai SE Composite Index (SHCOMP) Continues Consolidation in a Range as the Index Fails to Trend

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

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

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
The index has been fluctuating between levels 3200 and 3400 since July. The price is making an upward move to the upper range. It has earlier fallen to the lower price range before resuming upward. This has been the market situation in the last three months.

Daily Chart Indicators Reading:
SHCOMP is at level 52 of the Relative Strength Index. There is a balance between supply and demand. 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 sideways move. The price is also fluctuating between levels 3200 and 3400. The price has continued to be in a sideways move. However, the market has continued its sideways move within the price range. The price action is similar to the one on the daily chart.

4-hour Chart Indicators Reading
SHCOMP is above 50 % 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 sideways indicating the sideways trend.

General Outlook for Shanghai SE Composite Index (SHCOMP)
The index is still trading between levels 3200 and 3400. SHCOMP is yet to trend as the market continues to fluctuate within a confined range. The market is also in a choppy price action.

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