Hexun Information Zheng Zhenhua: Interpretation of the Index Rebound Target, Technology is the Biggest Opportunity!

On Wednesday, major indexes surged on increased volume, and jumped sharply. Where is the target for this rebound? After a big rally, is it time to add positions, or to reduce them? Technology and “gold” surged sharply—which of the sectors below could become the new hot spots?

Horseshoe Information (Xunxi) analyst Zheng Zhenhua said, focusing on three points. First, on Tuesday it was clearly stated that April 8 is an important turning-point time window. Today, the index delivered as expected with a big bullish candle line. The rally is just the result of a rebound resonating from the easing of the Middle East situation, which led to a slight dip and then a rebound. 3,800 points is the key bottom of the first half of the year. Second, the first target for the rebound is 4,000 points. Under normal circumstances, reaching the 4,050 area is an important resistance zone. At that time, if there is a volume divergence, it would be possible to make some position reductions. But the trend has already reversed; after a pullback, it remains an opportunity.

Third, in March, technology stocks saw the largest decline. Now, the most beaten-down rebound is the biggest hot spot—especially some companies with good performance, industry leaders combined with technically oversold quality “value traps,” and there are still many opportunities. You should keep a big-picture mindset and patience to hold the high-quality shares at the bottom.