The Shanghai Index continued to moved higher, as discussed in a previous post in January, reversing in April from the falling dowtrend (as shown in the weekly chart above). The index is approaching the apex of a huge rising wedge which usually have bearish resolution when broken down.
Nevertheless, as we notice in both the weekly chart (above) and the daily chart (below), the index is testing a daily uptrend line (just above the weekly wedge uptrend line), the rising daily SMA200, the flat weekly EMA50 and the last Fibonacci retracement (which held in the previous two circled instances). The area formed by the mentioned elements around 2800 is key support which if broken, can have strong bearish consequences. Make it or break it?