Shanghai Composite (SSEC.NDX)
Close: 3 154.03 (+31.63), May 17, 2024
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Liquidity risk: | Volatility risk: |
Short term
Shanghai Composite is within an approximate horizontal trend channel in the short 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 3070 points. The short term momentum of the index is strongly positive, with RSI above 70. This indicates increasing optimism among investors and further price increase for Shanghai Composite. However, particularly for big stocks, high RSI may be a sign that the stock is overbought and that there is a chance of a reaction downwards. The index is overall assessed as technically positive for the short term. Recommendation one to six weeks:
Medium term
Shanghai Composite has broken through the ceiling of a falling trend channel in the medium long term. This indicates a slower falling rate initially, or the start of a more horizontal development. The moving average indicator has given a positive signal. In isolation, this signals a continued rise, but the slowness of the indicator often means that one has lost much of the upside. The index has marginally broken up through resistance at points 3150. An established break predicts a further rise. The index is overall assessed as technically slightly positive for the medium long term. Recommendation one to six months:
Long term
Shanghai Composite is in a falling trend channel in the long term. Falling trends indicate that the market experiences negative development and falling buy interest among investors. The index is moving within a rectangle formation between support at 2676 and resistance at 3374. A decisive break through one of these levels indicates the new direction for the index. The index has support at points 2890 and resistance at points 3400. The index is overall assessed as technically negative for the long term. Recommendation one to six quarters:
Period |
Vol.bal. |
Volatility |
Liquidity |
+/- % |
1 day | - | 0.65% | 0.38 | +1.01% |
5 days | -78.26 | 2.17% | 2 432.13 | -0.02% |
22 days | -7.30 | 5.20% | 1 823.49 | +4.46% |
66 days | -9.55 | 9.61% | 1 735.67 | +11.43% |
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