Hexun Investment Advisor Wen Taibin: 3900 Breaks Support, Will the Market Rise or Fall After the Holiday?

Today the A-shares market has crashed again. The Shanghai Composite Index has fallen below 3900. After the holiday, will it rise or fall? According to Hexun Investment Consulting, Wen Taibin’s analysis, after the holiday it should continue to probe lower, and it may be a pattern of first dropping and then rebounding. Why do we see it this way? First, the situation in the overseas markets still hasn’t fully calmed down. Second, funds remain relatively cautious. Today trading volume shrank to 1.66 trillion yuan, and again the in-market money-making effect is extremely poor. More than 4,000 stocks have fallen for consecutive sessions. In terms of sectors, today only computer power hardware rose; everything else basically fell. Finally, technically, the SSE Composite Index is still in its fourth-wave correction. In addition, today closed with a weekly doji-style bearish candle. The focus is on next week probing to around 3800 points, and whether it can show the following several features. First, can there be panic selling? Second, can it form a second leg at 3800? Third, can new capital enter the market? If all three conditions are met, it is very likely to first adjust down to 3800, and after a second leg appears, a rebound trading pattern will emerge.

(Editor: Wang Gang HF004)

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