CSI 300: Bearish below 3950

A brief analysis of the fundamentals:

On Monday (September 19), A-shares continued their recent weakness. As of the close, the CSI 300 closed down 0.35%, and the turnover dropped to 665.3 billion, a new low for the year. The net purchase of funds from the north was 1.603 billion. Looking forward to the market outlook, since September, the expectation of rapid interest rate hikes overseas has continued to increase, the disturbance of trade disputes has occurred intensively, the incremental funds are limited, and the position structure is unbalanced. Entry is more secure.

CSI 300 one-hour chart

A brief technical analysis:

From the 1-hour chart, the CSI 300 has hit a new low again. The K-line chart shows a short-term stabilization signal. At the same time, the MACD continues to increase its volume below the zero axis. The current resistance level has moved down to around 3950, and it will continue to be bearish below this level within days. Mainly, the bottom supports 3900-3860

Long and short turning point: 3950

Resistance: 3980.00 4060.00

Support: 3900.00 3860.00

Trading Strategy: Bullish above 3950.00, target 4060.00 4100.00  

Alternative strategy: bearish below 3950.00, target 3900.00 3860.00