CSI 300: Bearish below 3960

A brief analysis of the fundamentals:

On Friday (September 16), the major A-share indexes opened lower and moved lower, hitting new lows in more than three months. The sentiment in the two cities was pessimistic, and individual stocks generally fell. The turnover was less than 800 billion, and the net sales of northbound funds were 4.512 billion. Looking forward to the market outlook, the index will continue to fluctuate and fall. Recently, the interest rate in the inter-bank market has continued to operate at a low level. The central bank intends to guide liquidity to return to a normal level. The short-term capital will continue to be loose overall. It is expected that the market will gradually stabilize amid repeated shocks.

CSI 300 one-hour chart

A brief technical analysis:

Looking at the 1-hour chart, the CSI 300 broke through the previous low of 3980 again, forming a strong downward trend. The MACD is rapidly increasing its volume below the zero axis. At present, the previous low support of 3980 has been transformed into a resistance level, which is below this level within days. Continue to be mainly bearish, below support 3900-3860

Long and short turning point: 3980

Resistance: 3980.00 4060.00

Support: 3900.00 3860.00

Trading Strategy: Bullish above 3980.00, target 4060.00 4100.00  

Alternative strategy: bearish below 3980.00, target 3900.00 3860.00