Hexun Investment Advisor Liu Wenbo: A-shares shrink to a total volume of 19,437 billion, with 4,492 stocks closing in the red; pay attention to a key level.

The day before yesterday, blue-chip stocks bottomed out at the end of the trading session. Yesterday, there was a moderate rebound, but today it was all wiped out. Does this mean the rebound has truly ended? According to Liu Wenbo, a Huoxun investment advisor, several indices left gaps during yesterday’s rally, as shown in the chart below. This afternoon, the market experienced a continuous decline, with multiple indices partially filling the gaps from yesterday morning. Taking the Shanghai Composite Index as an example, it dipped and then recovered, barely holding the bottom without the support of the gap. While not necessarily confirmed, at least today the gap was held. Similarly, the Shenzhen Component Index performed slightly better than the Shanghai Composite. From the chart, we can see that only part of the gap was filled. All major indices and broad-based ones held steady today, except for the Sci-Tech Innovation Board Index, which broke through the gap. The Sci-Tech Innovation Board has been quite weak recently, clearly breaking through the previous upward candle and into the body of the earlier bullish candle. Overall, except for the Sci-Tech Innovation Board, the other indices held their ground. Does this mean the rebound is over?

Is it going to continue downward? I think it’s premature to make a definitive judgment today, so we are holding on tightly. All the troops in the city haven’t come out yet. Of course, by the end of the day, I felt uneasy because the last time we didn’t see the troops come out was around February or March this year, at that high point. The blue chips didn’t move, and after a night’s sleep, a big drop came—an hour-long large bearish candle wiped out a month’s worth of profits. So, last time we stayed overnight, but the next day all our gains were gone. I don’t know what will happen this time.

(Editor: Wang Gang HF004)

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