Shanghai Composite (SSEC.NDX)

Short term

Shanghai Composite shows strong development within a rising trend channel in the short term. This signals increasing optimism among investors and indicates continued rise. The index is between support at points 3360 and resistance at points 3470. A definitive break through of one of these levels predicts the new direction. Trading volume has increased substantially lately. This shows there is an increased interest for the index, possibly because of fundamental news. The index is overall assessed as technically positive for the short term.

Recommendation one to six weeks: Positive

Medium term

Shanghai Composite is within an approximate horizontal trend channel in the medium long term, which indicates further development in the same direction. There is no resistance in the price chart and further rise is indicated. In case of a negative reaction, the index has support at approximately 3300 points. The RSI curve shows a rising trend, which is an early signal of a possible trend reversal upwards for the price as well. The index is overall assessed as technically positive for the medium long term.

Recommendation one to six months: Positive

Long term

Shanghai Composite has broken through the ceiling of a falling trend channel in the long term. This indicates a slower falling rate initially, or the start of a more horizontal development. The index has given a positive signal from the rectangle formation by a break up through the resistance at 3128. Further rise to 3675 or more is signaled. The index is testing resistance at points 3400. This could give a negative reaction, but an upward breakthrough of points 3400 means a positive signal. The RSI curve shows a rising trend, which could be an early signal of the start of a rising trend for the price as well. The index is overall assessed as technically neutral for the long term.

Recommendation one to six quarters: Hold