Shanghai SE Composite Index (SHCOMP) Reaches Overbought Region, Targets Level 3000

Shanghai SE Composite Index (SHCOMP) Reaches Overbought Region, Targets Level 3000

Key Resistance Levels: 2900, 3000, 3100
Key Support Levels: 2800, 2700, 2600

Shanghai SE Composite Index (SHCOMP) Price Long-term Trend: Bullish
The SHCOMP is currently in a horizontal channel. The index has been rising and approaching the upper price range. Presently, it is approaching the overbought region. In a couple of days to come, the index will reach the overbought region. Sellers may likely emerge.

SHCOMP – Daily Chart

Daily Chart Indicators Reading:
The 50-day SMA and 21-day SMA are sloping horizontally indicating the sideways move. SHCOMP is at level 65 of the Relative Strength Index period 14. This indicates that the market is in the uptrend zone. It is also approaching the overbought region.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Bullish
On the 4 hour chart, the index is in an uptrend. A correction candle body tested 0.886 Fibonacci retracement level. This indicates that the market will rise to 1.129 extension level. The index upward move has limited space to cover as it approached the overbought region.

SHCOMP – 4 Hour Chart

4-hour Chart Indicators Reading
SHCOMP index is currently above 80% range of the daily Stochastic. The index is now in the overbought region. Sellers are yet to emerge at the overbought region as the index is rising. SHCOMP is in a bullish momentum and it is rising. The 50-day SMA and 21-day SMA are sloping horizontally indicating the upward move.


General Outlook for Shanghai SE Composite Index (SHCOMP)
The SHCOMP index is rising, though it is close to the overbought region. The curtain will soon be drawn in the overbought region. The index may reach a high of level 3000.



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