Chartbook: Chart Shanghai Shenzhen CSI 300: Consolidating, room for deeper corrective pullback

Saw gains to fresh year high at 4761 in Q4 before settling back in consolidation to support at 4450, the October 2024 year high.

Would take break here to open up room for deeper correction to retrace strong gains from above the April, current year low. Lower will see room for pullback to support at the 4330/4300 area. Below this will see deeper pullback to strong support at the 4200/4100, November 2024 highs. Break of this area, if seen, will open up room for extension to the 4000 congestion.

Correction is expected to give way to renewed buying interest later. A later break above resistance at the 4750 congestion and 4761 high will see room for extension to retrace the 2021/2024 losses to 4852, 61.8% Fibonacci level, and 4885 resistance. Higher still, will see extension to target 5000 psychological level.