China’s Shanghai SSE recovered mildly by closing up 0.54% earlier today. Sentiment was lifted by data from showing that industrial profits saw a substantial year-on-year jump of 29.5% in November, a significant acceleration from the modest October’s 2.7% growth.
However, there is no change in outlook of SSE for now. As long as 2935.70 resistance holds, fall from 3089.77 should still extend further to 61.8% projection of 3322.12 to 2923.51 from 3089.77 at 2843.42.
Break of 2935.70 would indicate short term bottoming and bring stronger rebound. In this case, the key hurdle will be 55 D EMA (now at 3008.08) which is close to medium term trend line resistance, as well as 3000 psychological level.
