23rd Market Morning Review

Yesterday, the market opened low but climbed high, successfully filling the downward gap from the day in the afternoon. There was a drop at the end of the session, resulting in a false bullish candlestick, with a significant contraction in trading volume. In terms of individual stocks, there were more declines than increases.

After two consecutive days of rebounds in the market, yesterday entered a phase of high-level volatility and consolidation. It is noteworthy that although there was increased volume in the afternoon the day before, it did not result in effective gains. During yesterday's afternoon rebound, the trading volume was again significantly insufficient, both of which are unfavorable signals for the subsequent market trend. Today is the last day of the meeting, and without substantial positive news support, the probability of the market filling the gap downwards is greater; only with positive news can the market pull out a medium to large bullish candlestick to escape the attraction of the gap below. From the perspective of volume-price divergence, the probability of the market breaking upwards is low, so if the market rebounds today, it is advisable to remain cautious and seize the opportunity to take profits at high points.

From a technical perspective, today the upper band of the Bollinger Bands for the market is at 3949 points (in an upward trend), which has both an upward pulling effect on the market and also creates some pressure; the recent high near 3922 points also suppresses the market. In terms of support, the 8-day line at 3890 points (upward) and the 13-day line at 3891 points (upward) form a double support; while the 5-day line at 3884 points (downward) exerts a downward pull on the market. Additionally, the gaps at 3863 points and 3839 points below have a downward attraction for the market, and the 34-day line at 3858 points (upward) can provide strong support. Based on this, today's operational suggestions are as follows:

1. If the market rebounds upward and reaches the range from 3922 points to the upper band of the Bollinger Bands at 3949 points, it is recommended to take profits at highs and reduce positions.

2. If the market oscillates around the closing point of 3913 points after opening, it is advisable to take profits and reduce positions on stocks that have increased significantly in the portfolio.

3. If the market enters a downward adjustment, it is generally not recommended to add positions before the gap at 3863 points is filled; the focus should be on observing. Light-position investors who still wish to add positions may operate independently in the range between the 5-day line at 3884 points and the 13-day line at 3891 points, with the core logic being the potential support the meeting's favorable news may provide to the market.

4. If the market continues to adjust downward, after filling the gap at 3863 points and approaching the 34-day line at 3858 points, it is advisable to add positions moderately to guard against further declines to fill the gap at 3839 points.

The above views and operational suggestions are for personal analysis only and are for reference. If you find the content helpful, feel free to like, follow, share, and bookmark, and you can also pay attention to the in-market commentary at any time.