Hexun Investment Advisor Chen Wei: Is the "bottom pattern" appearing near 3900 points, and has the adjustment been completed?

The market has sent us an important signal: trading volume is lacking. According to Xunxi Investment Consulting’s Chen Wei’s analysis, at this point in the cycle the market is in a wait-and-see stance. One step forward would be the start of a rebound; one step back would be how it retraces to an important support. At the 3900 level, that is a crucial must-hold position. And today, we can see that although the price action retreated at one point in the afternoon, at the 3900 level an important bottom fractal pattern has appeared. After this valid bottom fractal forms, the market has a round of rebound—but the rebound strength is clearly insufficient. So for the overall market at the 3900 level, what about it? There is still movement and volatility there. But the latest development is this: when you’re completely disappointed with it, it suddenly gives you surprises and joy.

Tomorrow’s price action may not necessarily be going badly. Why? Because at the 3900 level, the room for further downside is extremely, extremely limited. And tomorrow will also be affected much less by overseas markets—for example, the U.S. and Hong Kong stock markets. Tomorrow, those markets are closed. So for the A-share market, tomorrow may be able to provide us with the key signal of returning to 3936 and seeing increased trading volume.