Shanghai SE Composite Index (SHCOMP) Continues Consolidation as Bulls and Bears Reach Indecision

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. In September, the price is trading above the support line to break it. The index will trend if price breaks below it. Otherwise, the price fluctuation will linger on.

Daily Chart Indicators Reading:
SHCOMP is at level 39 of the Relative Strength Index. The index is in the downtrend zone and below the centerline. 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. The small body candlesticks describe the indecision between buyers and sellers.

4-hour Chart Indicators Reading
SHCOMP is below 20 % range of the daily stochastic. It indicates that the market is in a strong bearish momentum. Besides, the price has fallen into the oversold region of the market. The 21-day SMA and the 50-day SMA are sloping sideways indicating the sideways trend.


General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP is still trading between levels 3200 and 3400. It is yet to trend as the market continues to fluctuate within a confined range. The price action is characterized by small body candlesticks. This is one reason why the index is not trending.


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