Hexun Investment Advisor Li Xuehua: Today is only a pause in the decline; it may continue to fall back tomorrow.

March 24, Hexun Investment Advisor Li Xuehua analyzes that the A-shares will decline tomorrow. Today is not a stabilization, not a rebound, and certainly not a reversal. It is merely a pause in the decline. Why do I say this? The reason is simple. First, let’s look at the indices. Today, the three major indices opened high, then fell, and then rebounded again. Although it seems relatively strong, in fact, they haven’t recovered the yesterday’s bearish candle, and the three indices haven’t even touched the 5-day moving average. This means that this level is only a pause in the decline.

Secondly, let’s look at the most important volume. Today’s total trading volume has been decreasing throughout the day, and by the close, it had shrunk by over 300 billion yuan. After a sharp drop, a volume-decreasing rebound only indicates that the market’s active funds are very small at this level, and the willingness to chase higher is weak. Therefore, under these circumstances, today is only a pause in the decline. Fortunately, there was no retreat at the end of the day, so tomorrow there may be a rally. However, after the rally, it is likely to touch the 5-day moving average and then quickly retreat. So, if the situation remains good, it is a continuation of the bottoming process. If not, there is a high chance of a third decline.

(Edited by: Wang Gang HF004)

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