Shanghai Composite has broken a cluster of resistances at 3532/56, including its downtrend from April and key price/gap resistance. Consequently, the index is threatening to break higher from its broad converging range, economists at Credit Suisse report.
Important support seen at 3313
“The broader risk is turning higher again, with resistance seen next and initially at 3624/29. Above this latter area would be seen completing a large bullish ‘triangle’ pattern to mark a more important turn higher for strength back to the 3732 YTD high, then the 50% retracement of the 2015/2018 bear trend at 3810 and likely higher in due course.”
“Immediate support is seen at 3395, then more importantly at 3313.”
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