Hexun Investment Advisor Gai Yinan: Shanghai Composite at 4050, Has the Bottom Been Found After the Rebound from Testing Lows?

The Shanghai Composite Index retested the bottom again and rebounded. After a pullback to 4050, it rose again. This morning, we shared with our colleagues that today’s pattern shows a first decline followed by a rise, which may form a lower shadow. It’s a repeated test of the 4050 level. Guo Yinan from Hexun Investment Advisory said that this lower shadow does not necessarily indicate the final bottom, but rather depends more on the real body of the candlestick. So, this morning we told our colleagues that if today’s rebound after the initial decline is accompanied by high volume, it could mean a short-term upward push. However, if it’s a volume contraction, we believe there will still be a retest of the lower shadow’s low point through the real body, meaning further downward pressure is possible.