Yesterday, A-shares experienced the standard "Black Thursday". The 0.83% mid-yin candle of the Shanghai Composite Index broke through the 5-day and 10-day moving averages. In the short term, there is a possibility of further downward acceleration. For A-shares, no matter how stubborn the bulls are, they will be repaired.
Yesterday I analyzed the Shanghai Composite Index with you, and if it falls below the recent low of 2933 points, then it will look for the next round number of support points at 2900 points.
Daily chart of the Shanghai Composite Index
And if the index really falls below 2900 points, then 2900 points may not even be able to stop the car. Then we must see the ultimate target of this round of market correction at 2867 points. 2867 is a very small gap left on February 19 this year.
Why is 2867 the ultimate target? Because historically, judging from the weekly candlestick chart, there is support near 2867 points. Let's take a look at the weekly candlestick chart of the Shanghai Composite Index.
Weekly candlestick chart of the Shanghai Composite Index
As we can see from the chart above, I have marked the vicinity of 2867 with three red horizontal lines. You can see that the market index on April 22 of 22 and November 4 of 22 found support near 2867 points.
If the market really falls to 2900 points, or even falls below 2900 points, it comes to around 2867 points. So from the point of view of the wave structure, it is quite a perfect 5-wave adjustment wave. Let's take a look at the chart below - the possible wave structure of the Shanghai Composite Index.
Diagram of the possible wave structure of the Shanghai Composite Index
But as you can see in the chart above, I have marked a five-wave downward structure. And the more special thing about this five waves is that I marked the main falling wave of the third wave with the purple part. In other words, this third wave is also a structure of small five waves.
Finally, let me tell you that there may be performance opportunities in the market today, that is, the robot side that has moved in the market yesterday. Humanoid robots and robot concepts both saw a relatively obvious surge and fall yesterday. But I think the main reason for this sector is still affected by the trend of the broader market. So let's assume that the sector opened early this morning and there was a more obvious change. I think there may be a comeback in the short term. But considering that the overall market is so weak. And there may be a possibility of an accelerated correction in the market today. When participating, we must pay attention to putting risk control in the first element.
The above is just some of my superficial views on the market, the consideration is still very incomplete, and the market has a variety of unexpected factors, so my views are not necessarily right, only for everyone to think and discuss, does not represent any investment advice.