Shanghai SE Composite Index (SHCOMP Strongly Facing Rejection at Level 2900

Shanghai SE Composite Index (SHCOMP Strongly Facing Rejection at Level 2900

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 trading below level 2900 because the bulls failed to break the resistance at level 2900. The price has been repelled as  the market reaches a lower price range. The price action is currently showing bullish signals. This indicates that the selling pressure may have subsided. Presently an upward move is expected.

SHCOMP – Daily Chart

Daily Chart Indicators Reading:
The 50-day SMA and 21-day SMA are sloping horizontally indicating the uptrend. SHCOMP is at level 41 of the Relative Strength Index period 14. This indicates that the market is in the downtrend zone and likely to fall.

Shanghai SE Composite Index (SHCOMP) Medium-term Trend: Bullish
On the 4 hour chart, the index is in an ascending channel. The price has been testing the resistance at level  2900 to break it but was resisted as it fell to the Support Line. The price action is indicating bullish signals indicating a bearish exhaustion.

SHCOMP – 4 Hour Chart

4-hour Chart Indicators Reading
SHCOMP index is currently below 40% range of the daily Stochastic and it is approaching the oversold region. This indicates that it is in a bearish momentum. The SMAs are sloping upward indicating the uptrend.

General Outlook for Shanghai SE Composite Index (SHCOMP)
The SHCOMP index has plunged to the support line and approaching the oversold region. An upward movement is expected if the current support holds.

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Author : Azeez Mustapha


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