Hexun Investment Advisor Feng Lushun: On April 2nd, what’s next for banking and insurance?

On April 2, let’s interpret the performance of three major financial sectors: banks, brokerages, and insurance. Recently, the technology sector has shown a pullback. Can the financial sector stop the decline, rebound, and kick off a new round of upside momentum? We’ll analyze it through price-volume relationships.

First, let’s look at the banking sector. Banks have already formed a bottoming structure. While the stock price has made a new low, the indicators have not made a new low, forming a bullish divergence at the bottom (bottom divergence). After the bottom divergence is completed, the moving averages have formed a golden cross. Therefore, the banking sector has entered a new round of upward momentum. On the weekly chart, it has broken above the 5-week moving average; on the monthly chart, it has broken above the 5-month moving average. In the short term, it has upward potential.

Next, let’s look at the insurance sector. The insurance sector’s stock price has made a new low, and the indicators have also made a new low, which indicates it is still in a downtrend. However, the trendline indicator has already fallen to above 50. At this level, a rebound is likely to occur, and the insurance sector has also already reached the bottom.

Finally, let’s look at the brokerage sector. For the brokerage sector, the MACD has not yet produced a bottom divergence at present, and the trendline indicator suggests it has not hit the bottom yet. Overall, insurance is slightly better than brokerages, and banks are slightly better than insurance. The banking sector is currently in an upward formation. In the financial sector, you can pay attention to some defensive opportunities.

(Editor: Zhang Yan)

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