Hello fellow investors!
Today, the A-share market saw a slight increase, but a crucial moment is fast approaching! Multiple technical indicators suggest that the market may experience a significant turning point this week. Want to know how to navigate the market next? Read on!
Tomorrow's Focus: 3404 Points!
Let's get straight to the point: 3404 is the key level to watch in the short term! Please pay close attention!
Here's why:
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Multi-Cycle Divergence Stalling: If the Shanghai Composite Index breaks through 3404 points, top divergence stalling may appear on the daily, 120-minute, 90-minute, and 60-minute charts. Once all four cycles stall simultaneously, the probability of forming a high point will greatly increase!
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Sequential High 9: A Sequential High 9 pattern may emerge on the daily chart, with the timing of this High 9 occurring this Wednesday. Pay particular attention to the data for tomorrow and the day after, as they are crucial.
Important: Starting tomorrow, closely monitor the market changes!
Key Time Nodes and Corresponding Strategies
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Tomorrow Midday: If the Shanghai Composite Index can break through 3404 points by the close of tomorrow's midday session, then the market will likely form a high point in the afternoon.
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Failure to Break Through Tomorrow: If the market fails to break through 3404 points by tomorrow's midday session, then the formation of a high point may be delayed until the day after.
Remember: Everything is based on the closing price!
How to Determine the Size of Divergence Stalling?
Although divergence stalling hasn't appeared yet, don't worry. When it actually appears, we will explain in detail how to determine the size of the divergence stalling.
It should be noted that the divergence stalling on the daily chart is relatively small, while the divergence stalling on the 120-minute, 90-minute, and 60-minute charts is larger.
Beware of the "Divergence Stalling + 9" Trap!
Sequential High 9 is not always effective and needs to be judged in conjunction with the divergence stalling situation.
- Effective "Divergence Stalling + 9": If divergence stalling appears on the 120-minute chart tomorrow, and is also accompanied by a Sequential High 9, then the probability of a high point appearing is very high.
- Ineffective "Divergence Stalling + 9": If divergence stalling does not appear tomorrow morning, and the closing price is below 3404 points, then even if a Sequential High 9 appears, it is likely to be ineffective.
We will only study the "Divergence Stalling + 9" pattern and will not consider other situations for the time being.
Wave Analysis: Focus on 3417 Points
To judge the upward movement of the third wave, it is also necessary to break through 3417 points.
If the closing price breaks through 3404 points, it is best to break through 3417 points before making a judgment.
Currently, the market movement since April 7 can be regarded as the upward movement of the third wave, presenting a five-wave pattern.
Future Market Trend Prediction
If the first wave of the third wave takes too long (more than 40 days), and the second wave correction takes 120 days, then the third wave is likely to be just an ABC structure, rather than a complete five-wave structure.
In other words, the market may first rise, then correct, and then rise again, eventually ending the third wave.
Position Control
Many friends are concerned about how much to reduce positions once divergence stalling appears. This needs to be judged based on the level of divergence stalling.
- Small Divergence Stalling Level: Reduce positions by about 40%.
- Large Divergence Stalling Level: Reduce positions by about 60%.
But please note that even if divergence stalling appears, it is not necessarily necessary to reduce positions!
Everything needs to be decided based on the actual situation tomorrow.
Beware of "Intuitive" Trading!
Please be sure to abandon "intuitive" trading! The purpose of establishing standards is to eliminate intuition.
Don't rely on feelings, everything is based on data and indicators.
Summary
Tomorrow's market is very crucial! Be sure to pay attention to the following points:
| Focus | Value |
|---|---|
| Key Resistance Level | 3404 |
| Stronger Resistance Level | 3417 |
| Closing Price of Wave 3-1 | ? |
- Pay Close Attention to 3404 Points: Focus on the closing price at midday tomorrow. If it can break through 3404 points, there may be trading opportunities in the afternoon.
- Beware of False Breakouts: If the market fails to break through 3404 points at midday tomorrow, then there is likely to be no trading opportunity, and we need to wait until the day after to see.
- Control Positions: The proportion of position reduction needs to be judged based on the level of divergence stalling. Please wait patiently for further analysis tomorrow.
That's all for today's content. I hope it's helpful to everyone!