CSI 300: Resistance moves down 3890

A brief analysis of the fundamentals:

On Friday (September 23), the stock indexes of the A-shares and the two markets fluctuated weakly in early trading. They rebounded and turned red in the afternoon, and then weakened again. The CSI 300 closed down 0.66%, and the northbound funds sold a net 506 million yuan. Looking ahead, the strength of the US dollar will continue, and the depreciation pressure of the renminbi will still be there. The currency cycle gap is widening in the short term, and the intensified conflict between Russia and Ukraine has further boosted the safe-haven value of the US dollar and put the renminbi under passive pressure. Therefore, the renminbi remains under pressure. There is a certain room for depreciation, whether it is US stocks or A shares, it is expected that adjustments will be repeated in the short term.

CSI 300 one-hour chart

A brief technical analysis:

Looking at the 1-hour chart, the CSI 300 rebounded to 3890 and then fell again. This was the previous low. As the support was broken, it has now turned into resistance. At the same time, the MACD continues to amplify below the zero axis. Signs of shrinkage, showing that the trend continues to bear down mainly.

Long-short turning point: 3890

Resistance: 3890.00 3920.00

Support level: 3830.00 3800.00

Trading strategy: bullish above 3890.00, target 3920.00 3970.00

Alternative strategy: bearish below 3890.00, target 3830.00 3800.00