Shanghai composite lost more than 6% after Trump’s tweet on trade tariff. US President Trump tweeted that US would hike tariff on 200bln Chinese goods from 10% to 25% from May 10th 2019. It hits low of 2876 and declines more than 12% from recent high 3288.It is currently trading around 2915.
On the lower side, near term support is around 2863 (50% fib) and any break below will drag the index down till 2800/2776 (200- day MA).
The near term resistance is around 3041 (55- day EMA) and any break above confirms minor bullishness and a jump till 3100/3196.
It is good to sell on rallies around 3000 with SL around 3045 for the TP of 2870.
