CSI 300: hindered by 3880

Basic analysis:

On Friday (December 25), the main indexes of the two stock markets fell collectively in the afternoon. By the end of the day, the CSI 300 had fallen 0.28%. The market sentiment was still low. The turnover of the two stock markets was less than 600 billion, more than 70 billion less than the previous trading day. Individual stocks fell more than rose, 2775 stocks fell and 2050 stocks rose. Looking ahead, the short-term market is in the standard adjustment pattern, and the pressure level is above 4000 points of the CSI 300 index in space. The superposition of real fundamental data is not ideal and epidemic prevention expectation is landing, so there is a callback. However, from a medium-term perspective, the 4000 index point itself is not high, indicating that the capital recognizes the medium-term investment value, so the adjustment space is not expected to be too large.

Shanghai Shenzhen 300 Four hour Chart

Technical analysis:

The 4-hour chart shows that the CSI 300 maintained a downward trend below 3900. After the rebound, it was significantly hindered. The trend was still dominated by short positions. The MACD still maintained a large volume under the zero axis, indicating that the market trend was weak. The current resistance remained around 3880, and the bearish trend was dominated below 3880. Below, it was around 3800-3750.

Empty turning point: 3880

Resistance level: 3880.00 3940.00

Support position: 3800.00 3750.00

Trading strategy: bearish under 3880, target 3800.00 3750.00

Alternative strategy: bullish above 3880, target 3940.00 4000.00