Investment Advisor Market View: Late-day Reversal Downward, Will There Be Opportunities in the Market Next Week?

On March 13, Hexun Investment Advisor Gao Luming pointed out in today’s market analysis that the market performed weakly today, with over 3,800 stocks declining. The three major indices collectively plunged, leading many friends to wonder if this indicates a downward trend in the market and whether they should exit to avoid the pullback.

Gao Luming stated that from three aspects, the market indeed showed early signals of a downward trend today. First, although there was some resistance in the early trading session, by the close, the market had broken below multiple moving average supports, including the 5-day, 10-day, 20-day, and 30-day moving averages, which indicates that the support levels below have been broken and is a sign of a downward trend. Second, on smaller timeframes, both the 30-minute and 60-minute charts have broken below the neckline lows, which are around 4098 to 4100 points. Today’s close at 4095 points shows a breakdown on these smaller scales as well. Third, during the market decline, trading volume increased significantly. In the morning, volume was about 150 billion, but by the close, the volume shrank to about 40 billion, indicating that funds are exiting during the plunge.

At the same time, Gao Luming also noted that the weakness in hot sectors is very obvious. Whether it’s the chemical sector affected by positive news, the technology sector, or the large financial sector, most have basically cooled off, confirming the market’s weakness. However, since overall trading volume has not shown a significant increase, he cautioned that it’s too early to make definitive judgments. He reminded investors to pay close attention to news developments over the weekend to prevent further market pullbacks, which could target 4050 points or even 4000 points in the future.

Regarding specific trading strategies, Gao Luming believes that since the market has already started to break down, investors should strictly control their positions in stocks that are struggling to rise, have already broken support levels, or are unable to advance further, to prevent further declines. Making money in this market is not easy, but losses can happen quickly. Hot sectors rotate very fast; today’s hot topics only lasted half a day, reflecting a very weak state. Under such circumstances, do not increase positions prematurely or excessively. Focus on defensive strategies and risk prevention. As for whether there will be a bottom-fishing opportunity after this pullback, further analysis of market technical patterns is needed, but in the short term, risk control remains the priority.

(Edited by: Zhang Yan)

【Disclaimer】This article only reflects the author’s personal views and is not related to Hexun. Hexun’s website remains neutral regarding the statements and opinions expressed in this article and does not guarantee the accuracy, reliability, or completeness of the content. Readers should use it as a reference only and bear all responsibilities themselves. Email: news_center@staff.hexun.com