Technical outlook and chart setups:
The Shanghai Composite Index is hanging around the 3,200 levels for now, but the fall is expected to continue to around 2,700 before the rally could resume. Please note that 2,700 levels is also the convergence point of Fibonacci retracement and extensions of the uptrend and counter trend respectively. It is hence recommended to remain flat for now and look for the indix to bottom around the 2,700 levels before initiating long positions. Immediate support is seen around the 2,800 levels and lower while resistance is seen around the 3,400 levels and higher respectively.
Trading recommendations:
Remain flat for now.
Good luck!
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