Shanghai Composite struggles to hold above 3100

China’s Shanghai Composite index is working hard to hold above 3100 levels after having retreated from the seven-month high of 3140 levels.

Once again, the drop in the Shanghai stocks is in line with the losses in oil prices. Chinese stock markets have been supported by improvement in economic data.

The trigger for the recent rally came through from Hong-Kong listed equities. The rally also makes China shares one of the best performers in August.

Technical Levels

The index was last seen trading around 3095. A breakdown of immediate support at 3076 (200-DMA) would open doors for a slide to 3038 (10-DMA). On the higher side, a break above recent seven-month high of 3140 would expose psychological figure of 3200.