Chartbook: Chart Shanghai Shenzhen CSI 300: Consolidation at 5000, room to extend gains

Consolidation at the 4450/4400 support in late-March gave way to strong rally at the start of Q2 to reach fresh year high at the 5000 level. 

Pullback from the 5000 high see prices correcting strong gains from the 4400 March low with break of support at the 4800/4750 area opening up room for deeper pullback to 4600 congestion. Below this will threaten return to the critical support at 4450/4400 March current year low and 38.2% Fibonacci level which is expected to limit corrective pullback. Break here will put bulls on hold and see room for deeper correction to 4270/4200, 50% Fibonacci level and November 2024 high. 

Meanwhile, resistance is lowered to the 4750/4800 congestion and January high. Clearance will return focus to the 5000 high and see scope for break to extend gains from 3108/3145, the 2024 double bottom and see room for extension to the 5200 congestion and 5265, 76.4% Fibonacci level.