The Shanghai Composite has broken above crucial medium-term resistance at 3000/02, the confirmed downtrend from the 2018 high, which turns analysts at Credit Suisse bullish again, with next key resistance seen at 3127, with scope then for the more distant 3288 April 2019 high.
Key quotes
“SHCOMP continues to surge higher following the market’s break above the important confirmed downtrend from the 2018 high at 3002/10 earlier in the week, which turned the risks higher.”
“Momentum continues to reaccelerate strongly to suggest the breakout should be now sustained, which suggests we may be finally set to end the multi-year ranging phase for a medium-term turn higher.”
“The spotlight now turns on 3127, the January 2020 high, above which would further reinforce the potential for a medium-term turn higher, with the next resistance at 3194/3201, before key resistance at the more distant 3288 April 2019 high.”
“Near-term support moves to 3000/2983, which now ideally holds to maintain the breakout and keep the risks directly higher. Next support below here is at 2952/50.”
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