Where will this round of A-share market rise peak? I make a bold forecast here.

The A-share market is full of changes and every fluctuation affects the hearts of countless investors. Some are happy and some are worried. Some people get lost in the ups and downs, while others wait for opportunities in calm observation.

Recently, the A-share market has ushered in a strong rise. The Shanghai Composite Index has broken through 3400 points, and the ChiNext Index has set a new high. The market's enthusiasm has been completely ignited, and investors have flocked in, trying to seize this wave of wealth growth.

In the midst of cheers, there are also calm voices. Some market analysts point out that after the continuous rise of the A-share market, a large amount of profit-taking has accumulated, and technical indicators also show that the market has the demand for a pullback.

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So, where is the height of this round of A-share market rise? Will it continue to rise or will it face adjustment? How should investors deal with it?

Mist is heavy: clues revealed by technical analysis

As an important investment reference tool, technical analysis can help us better understand the operation rules of the market and identify potential risks and opportunities. In the A-share market, technical analysis also has a wide range of applications.

1. High point connection: the echo of history

Connecting the high points of the A-share market in 2007 and 2015, we can clearly see a downward trend line. This trend line is like an invisible hand, suppressing the rise of the A-share market.

At present, the position of this downward trend line is about 3800 points, which means that if the A-share market wants to break through the historical high point, it must overcome this strong resistance line.2. Intense Trading Zone: The Battleground for Bulls and Bears

Between 3,600 and 3,731 points, there exists an area of concentrated transactions, which has been the battleground for the A-share market's multiple attempts to rise and then retreat over the past few years, accumulating a substantial amount of locked-in positions. The formation of a concentrated trading area typically signifies that there is significant disagreement in the market within this price range, with bulls and bears repeatedly contending for dominance. Ultimately, the side with greater strength will determine the market's future direction.

3. Dual Pressure: A Test of Market Resilience

The presence of a downward trend line and a concentrated trading area exerts dual pressure on the A-share market. When the market rises to this area, investors need to be particularly cautious and closely monitor market changes. If the market can successfully break through the dual pressure, then the A-share market will open up new upward space. On the contrary, if the market falls under pressure, investors will need to promptly adjust their investment strategies to control risks.

The Temperature of Sentiment: The Tug-of-War Between Market Confidence and Caution

Technical analysis has outlined the general contours of the A-share market, while market sentiment acts like an invisible force, profoundly affecting the market's short-term fluctuations.

4. Policy Warmth: The Spark Igniting Market Hope

Recently, a series of favorable policies have been introduced one after another, injecting strong momentum into the A-share market. From interest rate cuts and reserve requirement ratio reductions to supporting technological innovation and encouraging consumption, the frequent policy warmth has boosted market confidence.The introduction of favorable policies has created a positive development environment for the A-share market and has also brought new hope to investors.

5. Economic Recovery: A Solid Foundation for Market Growth

With the optimization and adjustment of epidemic prevention and control measures, China's economy has recovered strongly, demonstrating great resilience and vitality. The steady economic growth has provided a solid support for the A-share market.

Uncertainty in the global economic recovery still exists, and factors such as geopolitical risks and inflationary pressures may impact the A-share market.

6. Cautious Sentiment: Rational View of Market Fluctuations

Despite the many favorable factors in the A-share market, investors still need to remain cautious. After a series of consecutive increases, the market has accumulated a large number of profit-taking positions, and there is pressure for adjustments in the short term.

Investors should rationally view market fluctuations and avoid blindly chasing rises and selling on declines. During the investment process, it is important to control positions and manage risks well.

Dispelling the Fog: Finding the Compass for Investment

Facing the uncertain A-share market, how should investors make wise investment decisions?

7. Value Investing: The Lighthouse Through the FogIn the midst of market volatility, value investing remains the best compass for investors. Investors should focus on high-quality companies with long-term investment value, rather than being swayed by short-term market sentiment. It is essential to select companies with strong profitability, solid financial health, and an excellent management team, and hold them for the long term to share in the dividends of corporate growth.

Diversification is an effective strategy to reduce investment risk. The adage "don't put all your eggs in one basket" underscores the importance of diversification. Investors can construct a diversified investment portfolio based on their own risk preferences and investment objectives. By diversifying investments, one can effectively reduce the volatility risk associated with individual assets and enhance the stability of the investment portfolio.

The A-share market is a market full of opportunities and challenges. Investors need to continuously learn and improve their investment skills. Only by maintaining rationality and making cautious decisions can they achieve long-term and stable returns in the A-share market.