Shanghai and Shenzhen 300: support moves up to 4128

Brief analysis of fundamentals:

On Wednesday (November 18), the two A-share markets shrunk and consolidated. The stock index rose and fell flat throughout the day to 3224 points. The Shenzhen Component Index rose 0.09%, and the ChiNext Index fell 0.06%. 3060 shares in the two cities rose, 1730 shares fell, and the turnover shrank to 635 billion. The inflow of capital from the north was accelerated near the close, with a net purchase of 4.73 billion throughout the day, which was a net purchase for 11 consecutive days. Looking ahead, the current market valuation is still at a historically low level. We believe that the market may face certain disturbances in the short term as the Spring Festival approaches. However, the recovery of the market may not be over yet, and the index is expected to go well.

CSI 300 one-hour chart

Brief technical analysis:

Looking at the 1-hour chart, the CSI 300 rebounded further at a high level, and the bullish trend is expected to strengthen again. At the same time, the MACD maintained a relatively even heavy volume on the zero axis. The current support has moved up around 4128, and the target is 4200-4250.

Long and short turning point: 4128

Resistance level: 4200.00 4250.00

Support level: 4128.00 4086.00

Trading strategy: call above 4128, target 4200.00 4250.00

Alternative strategy: bearish below 4128, target 4086.00 4030.00