March 24th will see a weak rebound, using the limit-down reversal strategy to focus on computing power coordination and select strong stocks!

Good evening everyone. Today, the market experienced a significant decline, with accounts dropping by 1% or more being considered beyond expectations, while those that managed to profit beforehand are among the 99.9% retail investors who outperformed the market. Many people in my circle actually had large gains today, generally over 5%, and jokingly speaking, today’s few core stocks in the electric power collaboration avoided the major market sell-off, which was quite fortunate! [Taogu Ba]

In the evolution of the main trend, the break and rebound pattern is both a test of sentiment divergence and an important signal for the acceleration of leading stocks and the initiation of the second wave. To accurately grasp core opportunities in the main trend, one must rely on the break and rebound pattern to identify genuine recovery amid divergence, and true initiation after shakeouts, completing low-entry confirmations and trend following at key points. We always focus on core sectors, deeply analyze key stocks, and aim to capture the first wave of acceleration of leaders and the second wave after breakouts. Using the break and rebound pattern as a foothold, at nodes where sentiment and structure resonate, we lock in the most explosive and certain opportunities within the main trend.

The market’s concentrated holdings in leading stocks like “Huaneng Liaoning Energy” yielded nearly 50% returns. There are also several stocks bought on low dips last Friday, such as “Dongfang New Energy (10% pattern), Jiangsu New Energy (8% high sell), Green Power (4% pattern), GCL System Integration (8% buy low, sell high),” and of course, many friends in my circle also hold stocks like “Hang Electric, Yunnan Energy Control, Beijing Keli, Chint Power, Huadian Energy.” Today, unless you held strong stocks since last week, many others experienced losses. These stocks are all within our daily analysis system, and I know that friends who read my articles are aware of whether they’ve avoided risks within the electric power collaboration stocks.

Today, A-shares experienced a large-volume plunge, with the Shanghai Composite Index dropping 3.63%, temporarily falling below 3800 points. After the market closed, I summarized the core reasons: mainly external shocks from the Federal Reserve’s hawkish rate hike expectations and geopolitical conflicts in the Persian Gulf, combined with internal liquidity factors. Tensions in the Persian Gulf pushed oil prices higher, inflation concerns increased, and global risk appetite cooled. Internally, end-of-month capital repatriation, institutional rebalancing, and profit-taking in high-flying sectors led to panic selling.

On March 24, the A-share market is likely to see a weak oversold rebound, opening with a dip below 3800 to around 3765-3790 points to stabilize and undergo structural repair, with no strong V-shaped reversal expected, but a weak rebound is anticipated. Panic selling has been released, technical indicators show oversold conditions, and recovery conditions are present. Among thematic sectors, the electric power collaboration, as a policy-driven theme, is expected to recover first from oversold levels, with segments like green energy, intelligent dispatching, and computing power supply showing strong resilience. Chemical stocks benefiting from rising oil prices and spring replenishment cycles are cyclical and defensive, with strong institutional support, likely to outperform against the trend.

Overall, tomorrow’s market is expected to open lower with oscillations and partial rebounds, mainly within a narrow range. Operation-wise, it is advisable to hold light positions, focus on low buying of quality electric power collaboration stocks and leading chemical companies, avoid high-position pure thematic stocks, and reduce holdings during rebounds while structurally positioning for the next upward move, waiting for stabilization signals.

Analysis of market expectations on March 24:

The main theme continues to revolve around “electric power collaboration,” including “green energy, energy storage (new energy, photovoltaics), smart grids, ultra-high voltage, AI hardware, and computing power leasing.” This includes the dual overlay of electric power collaboration and future energy in reports. Additionally, chemical stocks like methanol, especially the leading “Jinniu Chemical,” are expected to see stabilization and rebounds, attracting institutional focus.

March 24 Continuous Limit-Up Opportunities

1st to 2nd: Liaoning Energy, Jinnuo Technology

2nd to 3rd: Zhongli Group

3rd to 4th: Dongfang New Energy

After the break and rebound, analyzing stocks bought at low points with high sell targets, if sentiment recovers tomorrow, there’s still a chance for early performance.

Principle of break and rebound:

Previously shared, volume reduction rebound and volume expansion rebound, in markets without acceleration, most stocks tend to undergo shakeouts and pullbacks.

Volume expansion rebounds often retrace to the divergence volume’s top of the real body, while volume reduction rebounds usually return to the divergence volume’s bottom of the real body for accumulation.

The logic of break and rebound is very useful, especially in the continuation of hot themes. It helps distinguish between main force shakeouts and accumulation, as well as the process from end of shakeout to re-initiation and acceleration. I’ve been analyzing this for nearly two months; many may understand and apply it, catching good stocks. However, I find most people just go through the motions, just looking. I still recommend everyone carefully apply this approach in practice. Even if you don’t know how to buy, you can first verify in your watchlist.

Recently, market volume has been quite low, and most people may have already given up and laid flat. But don’t delay learning, as there will be many opportunities in the future. For example, in the past two weeks, our focus on core themes has rarely resulted in losses. Even with the recent sharp decline on Friday and today, you can identify stocks with main force involvement and support through break and rebound patterns. Even if today’s drop was severe, it wouldn’t fall much. Our goal is to focus on these strong stocks.

The above is a review of April 23. Within my personal understanding, there are no stock recommendations. The stock market carries risks; please invest cautiously!

Basic points for retail beginners to focus on:

Retail trading system logic:

Dragon head turnaround and limit-up double volume yin:

Limit-up double volume yin:

Previous high resistance levels:

Short-term volume-price intraday charts:

Upgraded version of break and rebound:

Details of the break and rebound strategy:

Details of large-volume yin rebound:

In-depth analysis of break and rebound: