Shanghai Composite

The Shanghai index has broken out from the trendline resistance and has closed above the 61.8% retracement level in yesterday's trading sessions. It looks like the Shanghai index is probably headed higher towards 3870 where wave i and iii will be equal. On the way down, the 20DMA and the 40DEMA are almost around the same level of 3510 and both these averages will provide support in the near-term in case of any correction/pullback.