Shanghai Composite (SSEC.NDX)

Short term

Shanghai Composite has broken through the floor of a rising trend channel in the short term. This indicates a slower rising rate at first, or the start of a more horizontal development. The index is approacing resistance at 3370 points, which may give a negative reaction. However, a break upwards through 3370 points will be a positive signal. The RSI curve shows a falling trend, which could be an early signal of the start of a falling trend for the price as well. The index is overall assessed as technically neutral for the short term.

Recommendation one to six weeks: Hold

Medium term

Shanghai Composite is within an approximate horizontal trend channel in the medium long term. This indicates that investors are uncertain and waiting for signals of further direction. A break upwards will be a positive signal, while a break downwards will be a negative signal. The index has given a positive signal from the rectangle formation by a break up through the resistance at 3119. Further rise to 3702 or more is signaled. The index has support at points 3170 and resistance at points 3470. The RSI curve shows a falling trend, which is an early signal of a possible trend reversal downwards 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 has broken down through support at points 3400. This predicts a further decline. In case of positive reactions, there will now be resistance at points 3400. The index is overall assessed as technically slightly negative for the long term.

Recommendation one to six quarters: Weak Negative