SHANGHAI, Nov 23 (Reuters) - China's key stock index fell 1.9 percent to a six-week closing low on Tuesday, weighed by metals firms and miners, as investors already on edge from recent monetary tightening measures eyed a stronger dollar as a reason to sell heavily weighted commodity issues.
The Shanghai Composite Index closed at 2,828.3 points, trading well below its 250-day moving average, now at 2,886 points. It fell by more than 3 percent at one point in early afternoon trade.
Analysts suggest recent falls may be overdone, with the 14-day Relative Strength Index (RSI) trading at 39, indicating the Shanghai Composite is now heading for technically oversold territory, which will happen when it hits a reading of 30.
Retail investors, who account for more than two-thirds of turnover, piled into the stock market in October, sending volume to multi-year highs, but have now started to lock in profits after the market started to slump in the wake of monetary tightening. (Reporting by Farah Master; Editing by Jason Subler)