The market on Friday continued the strength of the previous trading day, with the main index reaching a new high since 2132 points. Market sentiment was stable, and individual stock trends were flourishing. The stock index has begun to accelerate upward. During the session, sectors such as electronic information, chemical flowers, and aerospace military industry were particularly strong. The SME board index was stronger than the previously resilient large-cap stocks, and the frequent appearance of profit-making effects greatly stimulated bullish sentiment. Wang Haizhuan believed that there is potential for a major uptrend next week, which may be the most intense week in the first half of the year.
The sudden strengthening of the index in the second half of the week might be based on expectations of favorable policies over the weekend. Recently, the central bank has repeatedly deviated from its usual practice of issuing central bank bills or conducting positive repurchase operations, which could be a prelude to reducing the reserve requirement ratio for banks. Factors such as the decreasing proportion of foreign exchange deposits and reduced inflation pressure have increased the likelihood of lowering the bank reserve requirement ratio. At this point, any favorable policy could become a signal for the bullish forces to launch an offensive.
Technically, the market is currently near the 60-day moving average on the daily K-line chart, where the pressure is relatively high. However, after nearly 10 days of fluctuation before and after the Spring Festival, this pressure has been digested. There is a significant possibility of a volume increase and price rise next week. From the perspective of wave theory, no top structure has formed across all time cycles. A driving wave structure, specifically a 5-wave structure, will definitely appear in the short-term K-line chart. Since 2132 points, we should currently be in the process of the main rising acceleration phase of the 3-3 wave. It is expected that next week, there may be a gap-up opening form to confirm and stimulate the upward trend. There is potential for four consecutive positive sessions next week, accompanied by noticeable volume expansion. The ultimate rebound target range is estimated to be between 2500~2600 points.
In terms of operational strategy, it's important to firmly hold onto the belief of waiting for further gains. The current stock price is still in a safe zone with obvious room for further increases. In the future, catching up in underperforming stocks will become common. Stocks far away from the 60-day moving average have many opportunities for catching up. SME stocks have greater elasticity and should be prioritized.
Relevant thematic articles:
- Private Equity President Training Class
- 500 companies queuing for IPOs, market conditions unlikely to improve - Ye Tan's blog - Ye Tan's
- Private Equity President Training Class
- Ten charts: The more the market rises, the more dangerous it becomes - Ten charts - Finance Blog
- Private Equity Training Course Live broadcast on February 1st! [Alchemist] - Alchemist - Finance Blog
- PE Training Application for blog relocation matters - Blog Editor - Finance Blog
- Peking University Private Equity President Class Speculative route map for 2012 fund investment - Perfect NiuNiu - Finance Blog
- Peking University HSBC Business School Successfully breaking through the 60-day line, another positive week - Lin Yue's blog - Finance Blog
Recommended websites today:
http://www.simu365.com, http://www.ceolearn.com