Shanghai and Shenzhen 300: blocked at 3990

Brief analysis of fundamentals:

On Tuesday (December 27), the three major A-share indexes opened higher and moved higher. The CSI 300 closed up 0.98% throughout the day. More than 3,000 stocks in the two markets rose, and about 1,840 stocks fell. The trading volume rebounded slightly, with a turnover of 668 billion. Looking ahead, the overall valuation of A shares is still significantly underestimated. The domestic economy shows signs of stabilization and recovery. At the same time, the Fed’s tightening efforts will gradually weaken, which is expected to drive the market’s expected index recovery.

CSI 300 four-hour chart

Brief technical analysis:

Looking at the 4-hour chart, the Shanghai and Shenzhen 300 maintained a downward trend below 3900. After the rebound, it was significantly blocked. The trend is still bearish and downward. MACD still maintains a large volume below the zero axis. The resistance remains around 3900, below 3900 is mainly bearish, and below 3810-3750.

Long and short turning point: 3900

Resistance level: 3900.00 3950.00

Support level: 3810.00 3750.00

Trading strategy: bearish below 3900, target 3810.00 3750.00

Alternative strategy: call above 3900, target 3950.00 4000.00