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10 Dec 2014
China’s Shanghai Composite Index recovers from 3-year low
FXStreet (Mumbai) - The Chinese benchmark index, the Shanghai Composite bounced back from 3-year lows hit in the previous session on a bout of profit booking.
Currently, the Shanghai Composite Index trades at 2940.80 levels, rebounding 2.96% from yesterday’s close of 2859.92. Shanghai stocks suffered their sharpest fall in five years on Tuesday on the sustainability of a market that had rallied by almost a quarter in less than three weeks.
The sharp fall in the index was also seen after the People's Bank of China (PBoC) made some significant changes in its monetary policy which implied slight tightening in its monetary stance.
Shanghai Composite Technical Levels
The index has an immediate resistance stands at 2978.03 (Dec 5 High) above which gains could be extended to 3040 (Dec 8 High) levels. Meanwhile, support is seen at 2889.57 (50-day SMA) and from here to 2835.83 (Dec 9 Low) levels.
Currently, the Shanghai Composite Index trades at 2940.80 levels, rebounding 2.96% from yesterday’s close of 2859.92. Shanghai stocks suffered their sharpest fall in five years on Tuesday on the sustainability of a market that had rallied by almost a quarter in less than three weeks.
The sharp fall in the index was also seen after the People's Bank of China (PBoC) made some significant changes in its monetary policy which implied slight tightening in its monetary stance.
Shanghai Composite Technical Levels
The index has an immediate resistance stands at 2978.03 (Dec 5 High) above which gains could be extended to 3040 (Dec 8 High) levels. Meanwhile, support is seen at 2889.57 (50-day SMA) and from here to 2835.83 (Dec 9 Low) levels.