In the past week, the overall trend of A-shares has been quite satisfactory. Although the weekly increase is only 1%, the K-line pattern of the Shanghai Composite Index has shown a 4 consecutive positive trend. It should be said that this is a typical multi-party gun feature. The only disadvantage now is that the transaction has never been significantly amplified. It is precisely because of this that I think the safest thing is now.
It's still the same thing as the car talk. The Shanghai Composite Index has had many impacts on 3400 points. Almost all of them ended in failures before. Each impact of 3400 points will form a phased high point. There is a saying that it is said that if there are many false breakthroughs, the market will not believe it. So when you see that this time you hit 3400 points again, the market will not increase its volume, which shows that everyone is still scared of hitting 3400 points, and there is no active support for buying. They are more waiting and thinking that this breakthrough will still fail.
A shares, why is it so difficult for the Shanghai Composite Index to break through 3400 points? What are the funds waiting for?
Why is the breakthrough of 3400 points so difficult? This is the answer that everyone wants to know after the National Day last year. I think it should be interpreted from the following aspects:
First, the launch of the 924 market last year was too fierce, and in fact, there were huge traps between 3400 and 3600 points. Many funds were still at high levels, and the digestion took time. Generally speaking, there were either major benefits, and they could directly and quickly rush up to unconstraint the people at high levels, or they could make the traps at high levels lose confidence by exchanging time and space, and gradually cut off the limbs and leave. When the time extends to a certain period of time and the traps above were basically digested, the hope of upward impact was great;
Secondly, the policy has been in a vacuum period since 924, or there have been some policy increase in this process, but the market understands that they are all uninnovative policies, which are the improvement of the 924 policy last year. In this way, the market is always in a box of fluctuations, and off-market funds seem to be waiting for the implementation of new incentive policies, or conditions that can stimulate the market to launch a new round of rebounds;
Thirdly, the reason why funds have been waiting for so long is actually waiting for the uncertainty of tariffs. This biggest risk was released on April 2, so you will find that although the current market is relatively weak, it is stronger than the other few times when the index rises again at around 3200 points. This shows that authoritative funds maintain market stability. Secondly, incremental funds do feel that the biggest risk has been released, so the probability of directly breaking through 3400 points this time is greater than the previous few times.
How is the market going this week?
I have seen a gratifying signal from the daily line of the Shanghai Composite Index, that is, the MACD technical indicators have a low golden cross. If they can continue to rise this week, there will also be a low golden cross on the weekly line. I think this is a turning point for the bull signal, so the trend this week is very critical and will also prompt the market to rise positively.
The reason why I am so confident is that there are two points worth looking forward to: one is that the Sino-US economic and trade talks were held in the UK, looking forward to good news at that time; the other is that the trend of securities companies has been very strong in the past week, and the latest Huijin Company has become the actual controller of 8 companies. In this case, it has spawned the expectation of securities mergers. It is estimated that today's market brokers will still react.
Under the influence of these factors, the trend this week should continue to dominate, so it is better to look at it optimistically.
Disclaimer: The content in the article is for reference only and does not constitute any operational suggestions or prompts. Please be cautious when there are risks in the stock market and investment!
