Hexun Investment Advisor Zhu Yiming: Market Breaks Through Again with Increased Volume — Will It Stop Declining Next Week?

On March 20th, Huaxun Investment Advisor Zhu Yiming stated that this week’s market has completely ended, and the trend has been extremely dangerous. The index closed today almost at the lowest point of the week, forming a very long bearish candlestick on the weekly chart, and today’s trading also saw a slight increase in volume with a decline. During the session, the index first broke below 4000 points, then filled the previous gap support at 3977 points, and the support level was completely broken. The selling speed at the end of the day was very fast, caused by a large number of stop-loss orders, with many retail investors choosing to cut losses and exit in the late afternoon.

I still remember that on Tuesday this week, I specifically warned that it was not easy to determine that the bottom had been reached at that time. Now that both support levels have been broken, how should we view the subsequent market? I actually think that the current situation may be nearing its end, and there is not much to worry about. From the bottom line or retail investors’ psychological defenses, the overall offensive posture has already appeared. Even friends who previously predicted that support might be broken may now be hesitant to act easily. Based on this analysis, I believe there is a very high probability of seeing a bottom next week.

Here, I hope everyone firmly holds their chips, avoids blindly stopping losses and cutting losses, and does not casually change investment directions. Additionally, although the ChiNext Board experienced a rebound and pullback in the afternoon, and had a significant rise in the morning, as we mentioned, friends chasing the rise have already been trapped. Therefore, judging from the current situation, if the market is to stop falling next week, the first to do so is unlikely to be the ChiNext, but rather the Shanghai Composite Index. This is my outlook for next week. Currently, high-dividend stocks deserve renewed attention, as these defensive sectors may bottom out earlier. Even if they decline, the drop is relatively small. Everyone can prepare funds in advance to迎接可能出现的低位行情 next week. As for when the market might bottom out next week, you can follow our program for updates.

(Editor: Zhao Yanping HF094)

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