The walking method of the stock market index monthly line and the operation strategy

by zkjdjr0633 on 2012-02-09 14:59:29

The June monthly line has come to an end, forming a bullish star pattern after testing the bottom, closing at 2762.08 points. The monthly line typically follows one of three patterns:

1. First probing the lower shadow, then moving into a bullish line. Judging from today's double-top channel, if it moves within the range of 2765-2780 points, it should primarily form a bullish monthly line first. For individual stocks that have seen significant gains in June, it’s possible they may form a lower shadow in July. Mid-term investors can consider buying stocks where the monthly line shows a reversal, bravely purchasing during bearish adjustments, ideally at support levels.

2. First forming an upper shadow, then retreating weakly to form a bullish star. After stabilizing above 2780 points, there is potential for a rise to around 2848 points; a normal retracement would be expected upon encountering resistance. In a strong scenario, the monthly line neckline could reach around 2911 points. High selling points can be determined based on individual stock performance, avoiding chasing prices in the 2848-2900 region. The monthly line could form hanging man or doji patterns, so caution is advised against being caught in sharp price fluctuations like an elevator ride.

3. Strong breakout, with the monthly line closing around 2748 points. A failed attempt to break through the neckline might still maintain strength, stabilizing at the midpoint of the June bearish line. This sets the stage for a continued strong attack on 2911 points in August. Another minor possibility exists: failing to break through 2800-2825 points and then retreating to form an inside bar pattern within the lower shadow of June, waiting for a turnaround in August. Personally, I lean towards the second probability. The strategy remains focused on selling high and buying low. Short-term traders can buy stocks breaking above the ascending arrangement of multiple tops. Mid-term investors can purchase stocks showing a reversal in June.

A quick review reveals that many real estate stocks have shown monthly line reversals, warranting attention to any favorable policies regarding affordable housing. With some unease, there will likely be a second wave of accumulation in July. By the end of next week, the first accumulation phase time window will arrive, and further chasing high prices should be avoided. Following this, observe where the washout phase stabilizes. Dual-phase accumulation often forms double top and double bottom patterns, leading to back-and-forth volatility. Pay attention to maintaining a good rhythm. Not losing money in June is considered a win, and aim to achieve a 15% gain in July.