Shanghai Composite (SSEC.NDX)
Close: 2 736.81 (+0.79), Sep 20, 2024
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Liquidity risk: | Volatility risk: |
Short term
Investors have accepted lower prices over time to get out of Shanghai Composite and the index is in a falling trend channel in the short term. Falling trends indicate that the market experiences negative development and falling buy interest among investors. The index has support at points 2700 and resistance at points 2850. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically negative for the short term. Recommendation one to six weeks:
Medium term
Shanghai Composite is in a falling trend channel in the medium long term. Falling trends indicate that the market experiences negative development and falling buy interest among investors. The index is approaching support at 2700 points, which may give a positive reaction. However, a break downwards through 2700 points will be a negative signal. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically neutral for the medium long term. Recommendation one to six months:
Long term
Shanghai Composite shows weak development in a falling trend channel in the long term. This signals increasing pessimism among investors and indicates further decline for Shanghai Composite. The index is moving within a rectangle formation between support at 2642 and resistance at 3130. A decisive break through one of these levels indicates the new direction for the index. The index is testing support at points 2700. This could give a positive reaction, but a downward breakthrough of points 2700 means a negative signal. The RSI curve shows a falling trend, which supports the negative trend. The index is overall assessed as technically slightly negative for the long term. Recommendation one to six quarters:
Period |
Vol.bal. |
Volatility |
Liquidity |
+/- % |
1 day | - | 0.62% | 2 794.66 | +0.03% |
5 days | 50.59 | 2.04% | 559.14 | -0.27% |
22 days | -24.22 | 4.94% | 1 425.26 | -4.95% |
66 days | -12.56 | 9.72% | 1 415.01 | -9.25% |
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