CSI 300: 4200 is a watershed for long and short

A brief analysis of the fundamentals:

On Tuesday (July 19), the trend of A-shares diverged, the CSI 300 index rebounded slightly, and individual stocks rose more or fell less as a whole. Nearly 3,300 stocks in the two markets were in the red, and the transaction failed to exceed one trillion yuan. The northbound funds sold unilaterally throughout the day. 9.859 billion yuan, a one-month high. Looking forward to the market outlook, the current market is consolidating in the short term, but in light of the fundamental background, it is unlikely that the liquidity will be significantly tightened and the inflation will exceed expectations. A shares are expected to get out of the slow rise.

CSI 300 one-hour chart

A brief technical analysis:

In the 1-hour chart, the CSI 300 stopped falling and rebounded above 4200, and the MACD began to shrink below the zero axis, indicating that the market is expected to rebound.

Long and short turning point: 4200

Resistance: 4340.00 4385.00

Support level: 4200.00 4150.00

Trading strategy: bullish above 4200.00, target 4340.00 4385.00

Alternative strategy: bearish above 4200.00, target 4150.00 4100.00