Shanghai SE Composite Index (SHCOMP) Resumes Uptrend, Faces Resistance at Level 3400

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

Shanghai SE Composite Index (SHCOMP) Long-term Trend: Bullish
SHCOMP was earlier in a sideways trend. The range-bound movement was broken as price broke the resistance line and closed above it. The implication is that the index has resumed an uptrend. SHCOMP rose and was resisted at level 3400. The index reached the overbought region and was repelled. The market reached a low of level 3200. An upward move is likely.

Daily Chart Indicators Reading:
SHCOMP has fallen to level 54 of the Relative Strength Index. The Index is in an uptrend zone and likely to rise. The 21-day SMA and 50-day SMA are sloping upward indicating the uptrend.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Bullish
On the 4- hour chart, the index is in an uptrend. The upward move is facing resistance at level 3400 as the market fell to level 3200. The price action is indicating a bullish signal. The Index is likely to resume a fresh uptrend.

4-hour Chart Indicators Reading
SHCOMP is below 20 % range of the daily stochastic. It indicates that the market is in the oversold region. The bearish momentum is exhausted. Buyers are likely to emerge in the oversold region. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Shanghai SE Composite Index (SHCOMP)
SHCOMP index is now in an uptrend. Presently, the price is facing resistance at level 3400. The uptrend will continue above level 3400 once the bulls clear the resistance.


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