Clears the 2945.9 resistance, forms a 2-month base

7-4-16

SHCOMP@2988.6 – near-term bullish – Clears the 2945.9 resistance, forms a 2-month base

SHCOMP broke above the 2945.9 range resistance (June 3, 2016 daily high) to form a 2-month base over 2781.2 (May 12, 2016 daily low). The base breakout signals further bullish momentum towards 3036.8 (38.2% retracement of the 3684.5/2638.3 downswing) next. Above the latter would open 3097.1 (April 13, 2016 daily high) near the 200-day moving average currently at 3108.9.
However, failure to hold above the 2922.5 support (July 4, 2015 low) would dampen the bullish momentum and extend the weakness towards the 2807.5 base area (June 24, 2016 daily low).

Outlook:
Daily: bullish
weekly: neutral
Monthly: neutral