Shanghai SE Composite Index (SHCOMP) Faces Rejection at Level 3370, May Resume Downward

Shanghai SE Composite Index (SHCOMP) Faces Rejection at Level 3370, May Resume Downward

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

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
SHCOMP is range-bound between levels 3200 and 3400 since July. The index is falling as it faces rejection at the upper price range. That is, a downward movement of the index is expected. The index may retest the lower price range.

SHCOMP – Daily Chart

Daily Chart Indicators Reading:
SHCOMP is at level 54 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: Ranging
On the 4- hour chart, the index is in a sideways move. The index is in an upward move but faces rejection at level 3370. The price is likely to fall as it faces rejection at that price level. The index is in a choppy price action.

SHCOMP – 4 Hour Chart

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. Besides, the market has reached the overbought region. The implication is that sellers may emerge to push prices down. 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. The index has reached the overbought region of the market. We may see a downward movement of prices.


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