Hexun Investment Advisor Su Ligang: Has the rebound from the bottom ended with the rising line?

Is the bullish candlestick ending the bottoming rebound? Was yesterday’s long downward candle, which caused fear of a hundred-point decline, a weak correction during the decline process, or an important signal of a stage low? According to Su Ligang, a Huoxun investment advisor, before drawing this conclusion, let’s first qualitatively analyze today’s bottoming rebound with a focus from two perspectives.

First, what is our qualitative assessment of today’s bullish candlestick? This signal is positive, at least indicating the end of yesterday’s extreme fear. Remember, yesterday’s market experienced the largest single-day decline in nearly a year, with very serious panic selling. Under these conditions, today’s candlestick effectively indicates a slowdown in the decline. Many followers and family members should be aware that I have been emphasizing since last Friday that there is no need to be overly pessimistic at this level. Our outlook for this week is that we are likely to see a stage low since the adjustment from 4197.

Regarding today’s bottoming rebound bullish candlestick, I personally lean towards the view that since tomorrow is Wednesday, the ninth day since the March 13 adjustment, and today is the eighth day, this rebound is an effective signal to confirm the stage low for tomorrow. To clarify, this level is not only a slowdown in the decline but also an important signal that establishes a stage low at this position.

So, how should we view the market tomorrow? I want to highlight two points. First, if the market continues to rise tomorrow, I think that would be unfavorable. Remember, in the past three days, individual stocks have fallen relatively sharply, so if there is a continued rebound tomorrow, selling pressure at this level will still be significant. Second, Thursday might see further declines, but this does not change the overall view that a stage low has been formed this week. Conversely, if the market does not continue today’s rise and instead continues to probe lower during the session, then we can conclude that this stage low has been officially established. The remaining time will mainly focus on a rebound correction.

Where are our target levels for the rebound? The first target is yesterday’s gap, and the second is 4002.