Shanghai Composite (SSEC.NDX)
Close: 3 154.32 (+25.84), May 9, 2024
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Liquidity risk: | Volatility risk: |
Short term
An approximate horizontal trend channel in the short term is broken up. Continued strong development is indicated, and the index now meets support on possible reactions down towards the trend lines. 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. RSI above 70 shows that the index has strong positive momentum in the short term. Investors have steadily paid more to buy the index, which indicates increasing optimism and that the price will continue to rise. 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. This shows that investors over time have sold at lower prices to get out of the index, and indicates negative development for the market. The index is moving within a rectangle formation between support at 2678 and resistance at 3375. 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% | 1 728.41 | +0.83% |
5 days | -28.17 | 2.22% | 2 492.85 | +1.33% |
22 days | -1.02 | 5.25% | 1 820.92 | +2.58% |
66 days | -2.64 | 9.52% | 1 710.72 | +14.44% |
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