Shanghai Comp: Above 2861/79 would mark an important break higher – Credit Suisse

Shanghai Composite is set to reopen on Wednesday and remains right at a key cluster of resistances at 2861/79, as analysts at Credit Suisse note.

Key quotes

“Above 2861/79 is now likely needed to mark a conclusive break higher to suggest the recovery can extend further yet, with next resistance at the 61.8% retracement at 2911, ahead of the 200-day average at 2921, where we would expect fresh sellers to show, in line with our broader negative tilt on the market.”

“Support is seen at 2855 initially, then price and gap support, starting at 2833/32 and stretching down to 2801, above which can keep the immediate risk higher.”