Shanghai index

Shanghai index is trying to break above its previous swing high and it looks like minor degree wave III can now possibly unfold. On the way up, 3337 and 3365 i.e. 40DEMA and daily upper bollinger band respectively, will be the initial resistance zone to watch out for in the near term. Break above this resistance zone can possibly lead to an up move towards 3431 where minor degree wave I and III will be equal. On the way down, the recent low of 3160 will be a crucial support level.