The stock index fluctuated and broke through the support level, requiring observation ----- Analysis and prediction review on the night of November 23, Friday: (It is expected that the Shanghai Composite Index will consolidate with reduced fluctuations on Monday. The upward consolidation signal for the stock index is at 3280 points, and the upward vibration consolidation signal is at 3333 points. The weaker support below is at 3241 points, and the stronger resistance upwards is at 3352 points. Stocks discovered by the analyst, such as Weiwei Shares and Yan Shen Shares, hit the limit up. The mentioned point of 3333 became the benchmark for institutional operations.
The Shanghai Composite Index opened at 3308 points and quickly surged to 3320 points, retraced to stabilize at 3310 points, then rose again in two waves but failed at 3333 points. Near noon, the stock index probed down to 3309 points. Concerned about the lunch break, it rebounded to 3324 points after the afternoon opening but fell back. The prices of indicator stocks like PetroChina, Sinopec, and Agricultural Commercial Bank dropped, showing signs of intentional pressure on the index. The index probed as low as 3305 points. The market did not show panic as the index consolidated between 3316 and 33010 points. Institutional participation pushed the volume higher, and at 2:57 PM, the index again encountered the sensitive level of 3333 points. Institutions pushed hard, significantly increasing the trading volume. Ultimately, the index closed at 3338 points, closing at the highest point of the day, rising 30.32 points, with a gain of 0.92%, and a turnover of 2054 billion yuan. The K-line showed a large bullish candlestick breaking upwards, creating a new high for this round, but lacked the momentum and energy for an upward attack. It was merely a new high from vibrations, and the upward assault seemed insufficiently justified. Considering the technical indicators in the daily line DMI where +DI kept declining and the conflict situation of the 60-minute KDJ golden cross moving upwards, whether the stock index can continue its upward inertia today still needs confirmation from tomorrow's close. However, the medium to long-term upward trend of the stock index remains resolute.
It is expected that tonight the Shanghai Composite Index will experience either inertial upward shocks or active downward adjustments, characterized by peculiar vibrations and downward tendencies. The movements may be unpredictable. The upward signal point is at 3352 points, with resistance at 3374 points and weaker resistance around 3400 points (a rapid small drop to this area might find support). Consolidation support is at 3310 points, and weaker support is at 3280 points (standing at these levels could provide excessive benefits).
In the two markets, 1382 stocks rose, 77 remained flat, and 294 fell, indicating that bulls controlled the market initiative, pushing stocks higher. 26 stocks hit the upper limit. The food manufacturing sector surged by 4.11%, with Maotai, Weiwei Shares, and Lianhua Flavoring hitting the limit up. Agriculture, forestry, animal husbandry, and fishery sectors were up by 3.36%, with Dahuhu Shares, Oriental Ocean, Yasheng Group, and Xinjiang Tianye leading gains. Transportation equipment was up by 2.72%, with Dongfeng Technology and Dongfeng Motors hitting the limit up, while Jianghuai Motors, Jinbei Motors, and Dimas Shares strengthened. Nonferrous metals increased by 2.62%, trade and commerce by 2.52%, food and beverages by 2.42%, petrochemicals by 2.52%, rubber products by 2.39%, non-ferrous metals by 2.38%, chemical products by 2.22%, and instruments and meters by 2.11%. The commercial trade and chemical sectors deserve attention, with shares like Lu Di Hua, Chi Tian Hua, Xiu Feng Hua Nong, Hai Tai Development, Hualian Shares, Guang Bai Shares, Hangzhou Xibai, and Wu Mining Development showing strengthening trends. The significant red reversal in heavyweight stocks was crucial for today's vibrations. Real estate, financial insurance, energy coal, and steel sectors are consolidating in a strong position. Financial stocks like China Life, Shanxi Guotou, Bank of China, CITIC Securities, and CITIC Trust strengthened. Keep an eye on the performance of Haitong Securities, which may see substantial gains. The real estate sector has rotation and catch-up demands after a period of consolidation, with Wanke Vanke, Fenghua Shares, Zhejiang Guangsha, Wanye Enterprises, and Huaye Real Estate strengthening. Sunshine Shares, Yue Hongyuan, Tian Tian Flow, Yinji Development, Gentleman Business, and Laiin Business have strong upward demands. Steel stocks represented by Baotou Iron & Steel show signs of catching up, including Tangsteel, Shaogang Jishan, Hanggang, Beigang, Yuan Steel Plates, and Yan Steel Shares. Watch for potential intraday opportunities tomorrow. Tonight's rise and fall in the stock index was due to Sinopec and PetroChina, which short-term vibrated and cleaned out floating profits but are looking to rise further, positively impacting the stock index. Agricultural Commercial Bank adjusted for three days and found support at the 10-day moving average, also showing signs of rebounding, pushing the index up today. Today, there were more rising than falling stocks, with Wanben Da -2.37% and other stocks like Tiankang Bio, Zhonghui Medicine, Times New Materials, Chengxing Shares, Tianke Shares, Xin Du Hotel, and Shanghai Melon among those lagging behind. Due to larger adjustments, these were normal consolidations, characteristic of a strong market. Therefore, stocks that rose high today and then fell back likely underwent washouts rather than bottoming out, so do not panic unnecessarily.
Stocks discovered on Friday, such as Weiwei Shares and Yan Shen Shares, hit the limit up, with Old Casting Pipe +4.5%, Hunan Jin Huan +3.86%, and Public Communications +3.74%. Newly discovered stocks include CITIC Securities, Shenzhen Airport, China Construction, Yan Steel Shares, Tangsteel, Sunshine Shares, Yue Hongyuan, Gentleman Business, Foreign Life Insurance, Wu Mining Development, Chi Tian Hua, Yaguo'er, Jinlong Shares. Note that discovered stocks aren't necessarily good; readers should confirm by observing their price movements in the market, using them only for learning and research, not as operational references. Readers are encouraged to select some backup operation stocks during market booms for shared exchange. There are no experts in the stock market, only winners and losers. Wishing all readers to become winners.
Trading Strategy:
1. When the stock index approaches 3300 points, you can moderately increase your position, flexibly adjusting your short-term positions. In principle, follow the strategy of buying dips in market hot stocks. Generally, maintain a position size of around 70%, with a 30% fluctuation range. Flexibly adjust your position size according to market conditions but avoid full positions. Use capital management to mitigate stock market risks.
2. Avoid the risk of sudden spikes and subsequent drops in individual holdings during the trading process. Set stop-loss and take-profit points for your holdings daily. Focus on trailing stops and combine sell-offs with set take-profit targets. Rapid response and quick decision-making are critical for execution. Accurate selection of key points for stop-loss and take-profit is essential, and swift actions are required.
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