Just as Taiwanese stocks continued to weaken, individual stocks also started diverging due to the deep decline. While some stocks continued to break the low, they also started not reaching the lowest level, even going so far as to lead the lowest stocks. categories? And what types of dark horses will appear will be the focus of this article.
【Arts/ Xu Bojie】
Shares in Taiwan hit another low! However, as Taiwan’s stock market continued to weaken, individual stocks on the record also started diverging due to the deep decline. While there were still individual stocks that kept breaking the bottom with the broader market, there were also stocks that did not hit bottom or even take the lead. How should these three types of stocks look in the future? Which strategy should be used? In the future, what types of dark horses will emerge after the market hits rock bottom? All of the above situations will be the focus of this article.
Entering the final stage of the bearish trend
Observing the long-short cycle of the individual stocks, in the final phase of the bearish trend, it constantly breaks the bottom and bounces until the single stock finds support. After finding the backing, the single stock first bounces and pulls out the gap and then starts making a bottom repeatedly.In the bottom process, the bottom won’t break again due to the gap in the front.
Finally, when the sector finds itself in a situation where the negatives do not go down, there will be short-term negatives that will allow the stock price to complete the low.If combined with the growth momentum of the sector, the long-term lows are completed and transformed into long.
On the other hand, if the sector’s momentum is insufficient, the stock price will repeat the test of the previous low and then revert to the repeated process of breaking the low or not breaking the low. As the formation of the low is the continuous finding the negative, there will be a “first day” in the past. It is said that the last 100 days, “and due to the need for repeated shocks to reach the minimum, the functioning of related stocks should also be more delicate.
As the current market continues to bottom out, most of the individual stocks are still breaking the low or on the verge of hitting the low.These individual stocks are representatives of weak stocks because they are in sync with the broader short-term market On the 5th row, as long as this condition is not met, the band will surely break again.
3 days not to break the bottom is the key
Next, if these low-breaking stocks are sold by a legal entity and the low is broken, then we need to observe when the legal entity’s selling pressure is over before they have a chance to build a low or rebound. share price reaches signs of stabilization and counterattack in the future. Also, as the fund’s breakout stocks are relatively weak technically, the real wave stop signal should have a large number of low-grade or continuous sharp drops. Only after an extreme panic can there be a clear stop. Overall, the technical pattern is more important than the moving average, meaning the low end must have a bottom pattern to truly stabilize the breakout stocks. Currently, the industries representative index or individual stocks on the record are TSMC (2330), IP (Silicon Intellectual wealth) is the focus of observation.
The Taiwanese dollar continued to depreciate and the selling pressure did not stop
TSMC is the culprit behind this wave of ongoing Taiwan equity breakthroughs. As of October 25, TSMC’s share price reached 374 yuan, a new low this year. Due to the short-term market doubts about China’s future political direction and the increased risk of cross-strait wars, there is no condition for the short-term Taiwan dollar to rise, which will also be the main reason. of the endless supply of foreign investors in TSMC. Before the foreign investment transforms, TSMC is still in the cycle of fund rupture, rebound and rupture of the fund again.
