Hexun Investment Advisor Chen Mantang: Wash Out First Then Rise, Watch for Bullish Line Tomorrow

First, the market pulls back first and then rises. Tomorrow, we expect a bullish positive line. Be patient and hold all sectors. The resistance level tomorrow is around 4150, to prevent a sharp rise followed by a fall. According to Chen Mantang from Hexun Investment Advisory, let’s analyze the market chart, support levels, and resistance levels.

First, the market has consecutive lower shadows, so you’ll notice that whenever the price dips close to 4100 during trading, it tends to produce lower shadows and rebound. Today’s bearish candle volume slightly increased, and these two candlesticks are quite similar. Tomorrow, at this level, we expect a bullish upward move, with support around 4120. We’ll see if a bullish candle can form at this level, possibly reaching around 4150 as a resistance, then a normal rebound.

Second, regarding Huawei Computing Power, there’s not much issue. Remember I mentioned that the Huawei Computing Power index faces resistance at high levels and may undergo a minor correction. This correction’s support is roughly near the small gap, with a structure of ups and downs. The correction usually lasts 2-3 bearish candles, with decreasing volume below. So, if you hold Huawei Computing Power stocks, be patient. But note that within this sector, some stocks need to switch between high and low positions. The only sector with significant unrealized losses is Media & Entertainment, which is currently oscillating with small candles and decreasing volume. After a few small doji candles, the sector remains bullish. On the weekly chart, this week shows small bullish volume. Tomorrow, see if this sector can produce a solid bullish candle, recovering half of the previous bearish candle.

Similarly, the Retail sector has a similar outlook to Media & Entertainment. The losses are around 2-3%. The weekly chart shows three consecutive bearish candles followed by a bullish one, but the strength of the bullish candle is weak. We need to wait 1-2 weeks. The target for this sector is to reach the highest level of the platform.

In summary, stay steady. The main principle for tomorrow is to observe whether the bullish candle on the weekly chart can cover the level around 4150. Hold your positions cautiously.