Hexun Investment Advisor Chen Mantang: Rises sharply then pulls back. Widespread decline with floating losses, staying flat and not taking action.

It didn’t break above 3950. Today we had a “gap up and then fade” move. During the morning live broadcast, we even said it could rise above 3950, but today’s close came in at the day’s low. The market is also down across more than 4,000 stocks. The tape looks weak.

According to Hexun’s market advisor Chen Mantang’s analysis, at this level, the sector where your individual stocks are currently at a floating loss should be held with patience. You can’t really do T to reduce your position now because you’re in a loss.

This week, our targets looking toward 3950 and up to 4000 are still unchanged. Everyone should be patient.

Then let’s look at the market’s structure. In the daily chart structure, we’re currently looking at the small rebound position within the C-wave level, with a move that gives us a chance to reach 4000. After it reaches this point, we can consider reducing positions.

Second, in the daily chart structure, the small channel upward remains unchanged. It’s currently similar to a small converging triangle. Around 3925 there is a resistance level that hasn’t broken through. To break higher, we would need a medium shadow candle or a big bearish candle followed by a broad-based “all-sector” rise. Just be patient and wait.

Second, in the monthly chart structure: this month ends with a lower shadow candle, though the lower shadow is a bit short—better if it were slightly longer. But once the month closes, all support in the monthly chart still has support levels around 3800 with lower shadows. The monthly chart is basically adjusting for about a month, and then the second month would bring a bullish candle–level small rebound. So in April, the rebound target at this level is still expected to be around 4000.

The April candlestick pattern should be a sideways oscillation with upper and lower shadows. So even if it dips to within 3900 points, it will most likely close back up. If April pushes higher toward above 4000, it will most likely pull back again, with an upper shadow—so during the oscillation process, there will be an opportunity for sectors. Right now there’s no particularly better approach. The tape is weak, so we can only hold and wait. If you can’t cut loss at this point, just wait.

(Editor: Wang Gang HF004)

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