The Shanghai Composite index's breakout move above its long -term resistance near 3,400 signaled a bullish uptrend.
This is part of a longer- term up trend breakout, with a target of 3,800. The longer term upside target is 4,200 but expect consolidation behavior near 3,800.
The breakout is a logical development of the chart pattern and the structure of the Shanghai Index. The Shanghai index breakout from the equilateral triangle pattern is bullish and had a long- term upside target near 3,600. Now this target has been achieved, the market will move towards the longer term historical resistance level.