Why did Wanli shares fall? In the last five days of the Year of the Bull, Wanli shares were continuously adjusted, falling by 73.8%. Why is the adjustment so violent? Other reasons aside

Why did Wanli shares fall?

In the last five days of the Year of the Bull, Wanli shares were continuously adjusted, falling by 73.8%.

Why is the adjustment so violent?

Other reasons aside, from a technical point of view alone, its decline is inevitable. Why?

Wanli shares were launched on November 24, 2021 with a high opening of 5.07%, and two months later the stock price reached a maximum price of 26.03, followed by a bull to a bear, into a downward trend, five consecutive days of sharp adjustment, the last four days were all down, almost no resistance. Why is that?

In fact, if you narrow the daily line, you can see the problem - it has risen too much in the short term. She started at 9.14 on November 24 and rose consecutively, the first few days were the big yang line, followed by six consecutive ups and downs. On December 16, Wanli reached its first head of 22.97. Then adjusted for ten days, and then entered the rising mode, six days later rushed to the second head 26.03, and then like a Lushan waterfall, the double head was formed. Once the double head is formed, it is strange that it does not fall! However, the double head is not the main reason for its decline, but the inevitable result, mainly because it has risen too much in the short term. On October 26, its lowest price was 8.13. Two months later, it rose from 8.13 to 26.03, an increase of more than three times, which shows how lucrative the main profit is.

The second reason is the high turnover rate. At the time of the formation of the first head, the turnover rate exceeded 15% for 8 days, and in the 10 months before the start, the average daily turnover was only about 0.4%. The turnover rate expanded from a low of 0.4% to 15% in one month, an increase of 25 times. It can be seen how strong the willingness of the main force to ship is!

The third reason is the continuous gap high. The first head is a continuous jump high. The formation of the second head is also a continuous gap high. Continuous gap high open, even the limit is easy to give retail investors the illusion, think that it will rise, or even up the limit, so that the high level to take the baton.

Therefore, to judge whether a stock is the main force in shipment, it depends on three conditions, one looks at the increase, the second looks at the turnover rate, and the third depends on whether it is a continuous gap. If the increase and turnover rate are very high, coupled with the continuous gap high, or even the big Yang line or up and down, then you must stay away from such a ticket, and even the best news cannot be believed, otherwise you will not be able to eat and go. Wanli shares are a lesson.

Investment is risky, enter the market need to be cautious!

Be careful with the Ship of Ten Thousand Years.