CSI 300:4200 to see a rebound

A brief analysis of the fundamentals:

On Monday (July 18), more than 4,000 A-shares were in the red, and the transaction exceeded one trillion for the third consecutive trading day. The net purchase of funds from the north was 3.5 billion. The signal from the People's Bank of China is that in order to maintain reasonable and sufficient liquidity in the banking system, it will carry out an additional 12 billion yuan of reverse repurchase operations, with a net investment of 9 billion yuan. As liquidity tends to loosen, A shares regain the opportunity to stabilize and rebound, and a slow bull can be expected.

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