Why is it shortterm?
The reason has been mentioned before, because the economic fundamentals have not improved to the point of attracting longterm funds.
But why won’t it fall sharply?
The reason is that there is a consensus on stimulating the economy, and a number of powerful stimulus policies have been announced. However, these policies have not yet really taken effect and need some more time. If you rush out at this time, you may miss the opportunity.
With this consensus, the market has a support point, and shortterm operations of selling high and buying low may be a good strategy.
what to do?
To do a good job of selling high and buying low, you must first roughly determine where the highs are and where the lows are.
This question actually depends on personal opinion and namibia phone number list there is no standard answer.
If we take the trend from October to date as the object of analysis of the stage trend, taking the Shanghai Composite Index as an example, we can see a boxlike area, that is, the index rebounded twice to , points in November and December, but failed to break through again, and the bottom is around , points.
The previous low was points on October . Technically, it is more inclined to believe that this is a support level. If cannot be maintained, the index may rush to this low.
A box can be roughly drawn:
Up to points, down to points.
In the absence of new forces to break the current equilibrium, this box can be seen as a shortterm range of fluctuations, and can also be used as a reference for upper and lower limits of trading. If the point position cannot be maintained, then it can only go to the previous gap, which is between points.