Chartbook: Chart Shanghai Shenzhen CSI 300: Consolidation below 3700 expected to give way to further gains in Q3
Consolidation at the start of Q2 around the 3500 level gave way to further gains to reach the 3700 level
Consolidation at the start of Q2 around the 3500 level gave way to further gains to extend bounce from low of February and the trend-line from the 2016 year low to reach the 3700 level.
Consolidation below the 3700 level expected to give way to further gains to correct sharp losses from the 2021 year high. Clearing the 3700 level and the 3750 resistance will see room to the strong resistance at the 3800/4000 area and where reaction can be expected. Above these, if seen, will open up stronger recovery to 4185, the 38.2% Fibonacci retracement. Higher still, will see scope to retest the 2023 year high at 4268. Gains beyond these will see potential to the strong resistance zone at 4400/4520, 2018 year high and the 50% Fibonacci retracement level.
Meanwhile, support is raised to the 3500/3450 area and this should now underpin on corrective pullback. Failure here, but not expected, will see trend line support from the 2016 and 2008 year lows at the 3108 and 3000 level, protecting the downside.
I,PakLai Ng, the Technical Analyst declare that the views expressed herein are mine and are clear, fair and not misleading at the time of publication. They have not been influenced by any relationship, either a personal relationship of mine or a relationship of the firm, to any entity described or referred to herein nor to any client of Continuum Economics nor has any inducement been received in relation to those views. I further declare that in the preparation and publication of this report I have at all times followed all relevant Continuum Economics compliance protocols including those reasonably seeking to prevent the receipt or misuse of material non-public information.