Chartbook: Chart Shanghai Shenzhen CSI 300: Consolidation expected to give way renewed strength

Bullish start to the year saw gains reaching fresh high at 4836 before drifting lower to consolidate above the 4600 level.

Bullish structure suggest consolidation giving way to renewed strength later and break above the 4836 high will further extend gains from 3108/3145 the 2024 double bottom. Clearance will see room to further retrace losses from the 5930, 2021 year high to the nearby 4852, 61.8% Fibonacci retracement. Beyond this will open up room for extension to the 5000 psychological level where reaction can be expected. Break here, if seen, will see room to 5200 congestion and 5264, 76.4% Fibonacci level.

Meanwhile, support at the 4500/4450 area is expected to limit corrective pullback and sustain the bullish gains from the 3514, April 2025 year low.  Failure here will open up room for deeper correction to the 4330 38.2% Fibonacci retracement. Lower still, if seen, will see room for deeper correction to strong support at the 4200/4175 congestion and 50% Fibonacci level.