If the trend of A shares in the past ten years is regarded as a stock, then we can see that in 2020, A shares are in the process of a new round of online breakthroughs. We exclude the daily line level interference, and it is more obvious if we only look at the quarterly K line:
The last round of the market was from 2007 to 2008. After the sharp rise and fall, the market entered a big bear market. From 2009 to 2014, it took about 5 years for the market to build a bottom market and built a huge market near 2000. The bottom of 3 years, this bottom should be the starting point of the market in the next few decades.
In 2014, there was a tentative impact near 5000 points, and then a callback to bottom (empty) near 3000 points, the purpose is to allow investors facing the next 20 years to gather enough chips. And it took a few years. Except for 2015, there were quarterly callbacks in 2018 and early 2020.
It is now obvious that the quarterly K-line has moved upward along the moving average system, and it is likely to extend towards 3500 or even 4000 points in the future. From a technical point of view, there are likely to be two requirements in 2021:
The first type is to go above 3400. Extending the expansion space, if you continue to stay near 3000 points for too long, it will give small and medium-sized short-term investors too many opportunities to buy on dips, but on the other hand, it will not have a washing effect. This part of the market will bring investors comprehensive exponential returns.
The second type, since this year is after 2007 and 2015, the K-line station has been on the moving average system for another quarter. It is easy to attract retail investors to follow suit. In order to clean up the follow-up market, after the index breakthrough, it may be similar to the situation in 2019. The finishing pattern of rising and falling. It is not even ruled out that the whole year of 2021 will be such a violent shock of repeated rises and falls. This part of the market will bring volatile market returns to investors.
If 2020 is a falling and rising market, then 2021 may be composed of multiple rising and falling markets.