Hexun Investment Advisor Chen Wei: Will the market break through the key resistance level and reach a new high?

The Year of the Horse brings a different market outlook. Yesterday, we saw a false downward candle, and today, a bullish candle with a long upper shadow indicating a pullback after a rally. But everyone, don’t be discouraged by this bullish candle. Chen Wei from Hexun Investment believes that at this level, it’s unlikely to break through. The long upper shadow suggests selling pressure. The key is where it closes. If it closes above 4138 points, what does that mean? It indicates that the short-term high could still be reached, potentially surpassing 4190 points and even breaking through 4200 points. So, the market at this level mainly depends on trading volume and capital recognition. The volume today has already shown a clear inflow compared to yesterday. You should know that we are still in a holiday atmosphere, and capital participation is relatively low. After the Lantern Festival next month, the overall inflow of funds is expected to come in steadily.

Before that, it’s quite remarkable that the market can still show such changes under these conditions, and today’s trading volume also performed well. From a market perspective, we believe that as long as 4138 points can be maintained in the short term, we will see the market rise above 4200 points in the new year. This is something we can already judge from recent market trends. Currently, the trading volume needs to reach a critical point of over 2.5 trillion yuan. Once it hits 2.5 trillion, it indicates sufficient momentum for a breakout. With the support of capital, the market could potentially show stronger performance in March. However, the focus should still be on the technology sector, which has not performed well recently. Despite many positive signals, it has not risen. It’s not sleeping; I believe it’s a volume-controlled consolidation. The main players are doing a final shakeout and clearing out all floating positions. After this, the market will truly enter a stage of rallying.