The strongest sector in June was none other than the automobile sector. It rose all the way from the lowest point this year. It ignored the existence of pressure levels several times and continued to rise and break through, with almost no unnecessary pauses. This rising market has almost doubled from the lowest point to the highest point. You can imagine how powerful this is. But there is no market that only rises but never falls. In the past two days, the automobile sector has begun to decline. Yesterday, it plummeted by more than 7%. Today, the decline has narrowed a lot, and it only fell slightly by 1.31% after the close.
Now everyone is more concerned about whether the automobile sector has made a normal correction in the past two days or has the rising market ended? Will it continue to fall tomorrow?
Automobile sector time-sharing chart
The automobile sector continued yesterday's weak market trend in early trading today. opened jumped short and opened lower, with a drop of more than 2%. This performance is really alarming. After all, the current position is too high. Once the falling market starts, how deep will the correction have to be to stop the decline?
Fortunately, after opening low, with the rise of the entire market of A shares , the automobile sector also rebounded rapidly, but it began to fall soon after the rise. Throughout the day today, the automobile sector continued to weaken. You must know that today the A-share market is rising collectively, and many sectors have almost recovered yesterday's losses.
Daily K-line trend chart of the automobile sector
Judging from the daily K-line trend chart, after the decline in the last two trading days, it has now fallen below the five-day moving average. Today it once fell below the ten-day moving average. Fortunately, it managed to recover later. Now look In the short term, the auto sector has turned from a strong market to a weak market.
Judging from the technical indicators Bollinger Bands , the trend has fallen and encountered the middle rail line. Although the middle rail line has a certain supporting effect, compared with the support strength of the lower rail line, the support of the middle rail line is relatively small. . Coupled with yesterday's plunge and today's performance, investors must be worried deep down. Once there is a slight disturbance, it is easy for to fall and to fall. Therefore, it is estimated that the middle rail line of Bollinger Bands will be difficult to support for a long time at this time, and will soon fall below the middle rail line. Once the middle rail line is broken, it will continue to fall for a long time.
Taken together, there is a high probability that the automobile sector will continue to fall and the correction will continue, and it is very likely that there will be a continued decline, and the decline will be relatively large.
This article is only a personal opinion and does not serve as investment advice.
