Shanghai Composite: Running into channel resistance

In an earlier post, i pointed out a possible bounce in the Shanghai Composite index to 3020 or 3050. Since then the index has taken its time to regain 3000, and is currently approaching channel resistance around 3010-20. If the move is strong enough to break through the channel, we can expect a move up to 3150.



In the short-term, resistance levels are 3000, 3020 and 3050. However, if we turn down from here, expect a move lower to 2700 area, before any meaningful rebound.