At the close of trading on November 4, 8 banks in the banking sector rose, 25 banks fell, and 8 banks closed. Ranked 72nd among the 76 industry sectors, led the rise in automobiles, beverage manufacturing, and small household appliances, while coal mining and processing, real estate services, oil and gas extraction and services led the decline. The Shanghai Stock Exchange rose 0.81%, the SZSE rose 1.3 percent, and the ChiNext Board rose 1.06 percent. The banking sector fell 0.37 percent to close at 921.49.
The recent trend of bank stocks has been a bit bad. The bank index is falling down little by little, where will the bottom be this time? Who can say for sure? A friend asked me, is it the time to increase the position? I replied: Yes and no! Why?
It is said that it can increase the position, mainly because it is basically at a stage low now. The banking sector is currently at 921.49 points, only 0.48% away from the last stage bottom of 917.04 points. If it is now in the upward wave, it is basically the stage bottom of the bank now, of course, you can increase the position.
Saying no is mainly because we can't be sure if the banking sector is now in an upward wave or a downward wave. If it is a downward wave, then tomorrow the banking sector will fall by 0.48%, and it will easily fall below the bottom of the last stage. Once it is broken, it is not easy to judge where it will fall in the future.
There is also a very important point to pay attention to in the process of adding positions, that is, the different pace of sectors and individual stocks.
The banking sector is now at 921.49. Push forward from this point to the beginning of the downward wave on May 26. In the process, the banking sector has been near this point three times, at 920.7 on September 24, 924.04 on August 31, and 921.84 on August 2.
Looking for a few of the more popular bank stocks, we can look at their stock prices at these four time nodes.
China Merchants Bank will be priced at 51.75 yuan on November 4, 48.77 yuan on September 24, 48.96 yuan on August 31 and 47.71 yuan on August 2.
Industrial Bank is priced at 18.23 yuan on November 4, 17.92 yuan on September 24, 18.5 yuan on August 31 and 17.9 yuan on August 2.
Ping An Bank is priced at 17.87 yuan on November 4, 17.35 yuan on September 24, 17.8 yuan on August 31 and 18.01 yuan on August 2.
Postal Savings Bank is priced at $5.34 on November 4, $4.95 on September 24, $5.14 on August 31, and $4.84 on August 2.
ICBC is priced at 4.65 yuan on November 4, 4.64 yuan on September 24, 4.62 yuan on August 31 and 4.6 yuan on August 2.
Bank of Nanjing will be priced at 9.59 yuan on November 4, 8.98 yuan on September 24, 9.38 yuan on August 31 and 8.85 yuan on August 2.
Do you find a clue in this comparison? If you were to pick one of the six banks mentioned above to increase your position, which would you choose? There is no doubt that Ping An Bank and Industrial Bank should be chosen.
Assuming that the bank stock price has a cycle in the fluctuation, the bank sector index returns to its original position, and the price of individual stocks should also return to its original position. But if it does not return to its original position, higher than the original position, then we can think that it has not fallen into place, and may fall in the future.
China Merchants Bank's current price is much higher than the price of other days, Industrial Bank is lower than August 31 and close to August 31, and Ping An Bank is lower than August 2 price and close to August 31. Postal Savings Bank, Industrial and Commercial Bank of China, and Bank of Nanjing were much higher than any previous day.
At this time, it is indeed relatively low for the banking sector, but whether it has reached the bottom of the stage is not easy to judge. The key is to see if it will fall below 917.04.
If you want to increase your position at this time, it is not impossible, but you must pay attention to the difference between the banking sector and individual stocks in the trend. The banking sector as a whole has fallen a lot, but not all bank stocks have fallen to their original positions. It is recommended that you follow my idea to take stocks that you hold positions, whether they have really returned to the same bottom. If not, wait a minute.
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