Hexun Investment Advisor Zhu Yiming: Is the long-term cycle bottoming out after the full week's conclusion?

This week has come to an end. Zhu Yiming from Hexun Investment Advisory stated that, based on this week’s performance, the index still formed a long lower shadow line on the weekly chart. In terms of Friday’s single-day performance, both markets continued to show a decrease in volume, but this decrease is similar to what we saw on Tuesday and Wednesday, still reflecting a process of rising with reduced volume. Therefore, from the current overall results, I believe that first, from the low point of 3794 on Monday to the open low of 3850 on Friday, we can basically confirm that the index has formally confirmed a bottom in the short term, and even potentially at the weekly level.

From the current situation, the increase on Friday, in fact, from the extent of the low opening to the final closing, including the intraday high, saw the major indices rise by more than 1% during the day. This indicates that the process of rising with reduced volume did not lead to a significant increase in transaction volume or a blocking situation; at least the trading volume compared to yesterday is still reduced, which proves that selling pressure has almost disappeared. Under these circumstances, how could we still look bearish? This is my current question; in such a situation, the reduced volume indicates almost a reversal after the decrease, and the weekly K-line currently shows a bullish line, so how can we look down? It must be an upward outlook.

If we are looking upward, some friends may ask where we can see. I think we should be conservative and first look at the gap at 3955. The rebound in the market will only end when there is an increase in volume; a decrease in volume during a decline, including a rebound with reduced volume, should not be blindly viewed as bearish.

(Author: Shao Xiaohui)

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