China Stocks May Breach Resistance Level: Technical Analysis

(Bloomberg) -- China’s Shanghai Composite Index may rally 5.6 percent from yesterday’s close if it surpasses a so- called resistance level of 3,068, according to Kim Eng Securities Pte.’s Ken Tai. “The market condition has stabilized and this increases the odds for the Shanghai Composite to break above 3,068 in the near term,” Tai, Singapore-based senior technical strategist at Kim Eng, said in an e-mail interview. “A test of 3,137 or higher may take place if the Shanghai Composite breaks above 3,068.”

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