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Over the weekend, the market expectations reached an unprecedented consensus: most people believe that the stock market will usher in a "climax" this week! As for the rise all the way; if you should rise first, then fall back, and then rise, there will be differences in the market!
So, the strategy for this week must be formulated in advance to avoid missing the opportunity or being "washed out of the car early".
First, let's do a simple review and analysis of the sector trend last week:
Securities Company Index Daily K-line Chart
(1) The MACD indicator achieved a golden cross on June 4 and broke through and stood on the 20-day line.
(2) On June 5 and 6, the two trading days, the breakthrough and retracement of the 60-day line was achieved. is still on the way to confirm the retracement, and the support positions are the 60-day line and the 20-day line (important)
(3) In the early trading on June 6, a 15-minute divergence structure was formed. It has been adjusted for 4 hours, and the theoretical adjustment time will end this afternoon. Follow the trend after the opening at 1 pm.
(4)It has to be mentioned that the pressure: since the adjustment of the trend on October 8, there has been a trend line position (769 points), either not breaking through; or there is only one way to break through: complete through a big rise, with a large positive line of at least 5% or above.
What if you don’t achieve a breakthrough? Under this trend, the 20-day line has become the most important support position and cannot be effectively broken!
Recalling the historical trend, it is closest and most similar to the current trend, and should be traced back to June 2020, such as:
Securities trends in June 2020
On June 1, 2020, the sector broke through the 20-day line and the MACD indicator achieved a golden cross.
Then it maintained a volatile trend for 14 consecutive trading days, among which the most important support position is the 20-day line.
Finally, on the premise that the 20-day line support was valid several times, the sector started a breakthrough trend on June 19, 2020. Then the sector position rebounded from 619 points to 1054 points, and saw pressure!
Conclusion: We can learn from the historical experience. This time, the same is true.
So, for this week's trend, there are two results:
(1) either achieve a breakthrough for the trend (769 points)
(2) or complete confirmation of the 20-day support.
The purpose of both trends is the same: Awaiting momentum and making a big splash.
So, in terms of strategy, the 20-day line support is not broken. My personal opinion is: what is more reflected is opportunity!
Note: The stock market is risky, so be cautious when entering the market. Personal opinion, no investment and trading recommendations!
