Hexun Investment Advisor Zhao Bingyi: Software services have better value for short-term trading in the near term, and one can look for the appearance of daily KDJ greater than 100.

On March 23, Hexun Investment Advisor Zhao Bingyi stated that it is difficult to accurately estimate everyone’s losses this month. However, on the day the Shanghai Composite Index broke below the 60-day moving average, I mentioned in a short video that most people should consider leaving the market for the long term. Looking back now, after the index broke the 60-day line and accelerated downward, it is indeed concerning. But does this mean there are no opportunities in the market? Not at all.

First, look at the monthly chart of the Shanghai Composite Index, which is currently at a strong support level of the October line, and a rebound is entirely possible here. The Shenzhen Index also found support at the 30-week moving average on the weekly chart, indicating a potential rebound. Meanwhile, both the weekly KDJ indicators of the Shanghai Composite and Shenzhen indices are below zero, entering relatively low zones. In my view, the market opportunities may be greater.

I have always emphasized the software services sector. Last week, it retraced near the 60-week moving average. Although it broke below this week, the KDJ remains below zero. I believe this is an area for excess returns, and it may be worth trying to participate. This sector not only is at a relatively low level on the weekly chart but also shows a relatively low level on the daily chart, making participation quite cost-effective—just need to consider how long to hold to realize profits.

Some are worried that the monthly chart remains high and may undergo a monthly adjustment. This is indeed possible. However, market adjustments happen step by step. Since the weekly chart has already entered a relatively low zone, it is normal to attempt to capture daily KDJ values above 100. Combining short- and medium-term analysis, perhaps this approach can help seize market opportunities.

(Author: Zhao Yanping HF094)

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