Shanghai SE Composite Index (SHCOMP) Recovers after Falling to 2656 Low

Shanghai SE Composite Index (SHCOMP) Recovers after Falling to 2656 Low

Key Resistance Zones: 3100, 3200, 3300
Key Support Zones: 2700, 2600, 2500

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Ranging
SHCOMP index is still fluctuating between the levels of 2800 and 3100. On March 5, the bulls reached a high of 3074 and were resisted. The market continued its downward move. The price breaks the lower price range and falls to 2656 low. The market fell to level 30 of the Relative Strength index. The index was at the point of falling into the oversold region of the market. The price has risen back to the range-bound zone.

SHCOMP – Daily Chart

Daily Chart Indicators Reading:
The index fell to level 30 of the Relative Strength Index. Presently, it has risen to level 52 indicating that the market is in the uptrend zone. It is also above the centerline 50. The 21-day and 50-day SMAs sloping horizontally indicating the sideways move.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Ranging
On the 4- hour chart, the index is in a sideways trend. In the month of March, the index traded very low below the lower price range. This is below the 2700 price level. The market is making an upward move to the range-bound zone.

SHCOMP – 4 Hour Chart

4-hour Chart Indicators Reading
SHCOMP is above 75% range of the daily stochastic. Besides, it is approaching the overbought region of the market. The EMAs are sloping downward indicating downward move.

General Outlook for Shanghai SE Composite Index (SHCOMP)
Shanghai SE Composite Index traded very low in the Month of March. The market has gone up after the downward move. It appears the index will fall again if it reaches the overbought region.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.