Hexun Investment Adviser Lü Niman: Full Needle Testing the Bottom, Will There Be a Big Rally on Tuesday?

Be prepared before the market opens tomorrow on Tuesday. The turning point of the A-shares is about to begin. Let’s get straight to the point.

Hithink WiseNet Securities analyst Lv Nimang said that after the market bottomed out and rebounded today, the A-shares have now formed the third long lower shadow in the short term, creating a “golden needle” bottom pattern, consistent with yesterday’s view. Especially today, the index first broke below the 60-day moving average and was then strongly pulled back. This signal is very significant, and it’s important to clearly tell everyone that the A-shares’ turning point is imminent.

After two consecutive weeks of adjustment, the major players have basically finished repositioning. Moreover, the long-term upward trend of the A-shares remains unchanged. Here are four key points to keep in mind: First, today’s market bottomed out and rebounded, with a long lower shadow indicating strong technical support around the 4050 level near the 60-day moving average, which has been recognized by the market. The funds that are repairing the market are actively buying on dips. Second, in the afternoon, the semiconductor and storage chip sectors suddenly gained momentum, lifting the market. This is a good sign because the rebound is driven by tech stocks, not defensive stocks. As the saying goes in the stock market, as long as technology stocks stay strong, the trend isn’t over. If the tech sector can hold up, the market will have profit opportunities and attract outside investors to join.

Third, the trading volume in the afternoon shrank significantly. From another perspective, this is actually a good thing, indicating that most of the people wanting to sell have already done so, and the selling momentum is weakening. With a little bit of cautious capital entering, the market can be pushed higher. Lastly, although the market’s reversal cannot be fully confirmed yet, we are at a critical turning point. A positive sign is the strength of the Hang Seng Tech Index and the warming of the A-shares’ upward momentum, which fully demonstrates the current resilience. Under this special background, the advantages of our assets are beginning to show.

(Editor: Shao Xiaohui)

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