Hexun Investment Advisor Zhao Bingyi: Emphasize individual stocks over indices, pay attention to moving average support in software services, technical indicators have entered oversold levels first

3900 stocks waiting to rise, and today there was a loss effect. The decline in individual stocks is around 2%. Where does this reason come from? According to Zhao Bingyi, a Huoxun Investment Advisor, this was just discussed yesterday in the ChiNext Index. The daily KDJ is above 100, indicating that a high level has been reached for 126 minutes, which is very obvious, and there is divergence, so a correction could happen at any time. This is another issue emphasized yesterday: the software service sector’s 60-minute position has not yet been confirmed, so this result is caused by common factors.

Besides these points, today another focus is the Shanghai Composite Index’s 30-day moving average issue. Look here, the 30-day moving average has broken again. Under this condition, if the close remains the same, it will test the 60-day moving average more significantly. So, you need to manage the rhythm well. As for the ChiNext Index, during the process of approaching a daily high, although it’s very likely, what we are watching is whether the 30-day and 5-day moving averages can support it today. If they can support, there is still a chance for divergence and a rebound. If not, then it’s time to exit.

After all, the high levels on the 120-minute and 60-minute charts are evident. This year, the focus is on individual stocks, ignoring the index. So, which stocks are being watched? The software service sector. The target for this sector is the daily chart’s moving average above 100. The software service sector hasn’t finished its move yet, but how to choose the rhythm point? I’ve mentioned before that the 60-minute cycle can be used as a reference. Currently, the 60-minute cycle shows a J-value below zero, which is unfortunate because there is no support from moving averages. Therefore, software services are likely to continue diverging or sideways trading until a support from the average line appears, which would be a new buying point.

So, when trading in the software service sector, we need to pay attention to the rhythm. I’ve emphasized that if it cannot break through, it may pull back, mainly because the daily chart faces strong resistance at the 30-day moving average, which has been tested two or three times without success. Also, the 60-minute chart is already showing high-level divergence. This has been particularly emphasized, so the rhythm should theoretically include low-level divergence. Managing the market rhythm properly, there are still opportunities. Many individual stocks are actually quite attractive. For example, consider a situation where the stock repeatedly tests the moving average support. Such stocks with a small age often still have potential. Even if it breaks support and you stop out, the loss space isn’t large. But if it can start to rise from here, the potential gain could be significant.