Dayo-Guppy: Fall back without changing the long-term upward trend

Consolidation of the continuous "Red K line" Dayo Gubi Shanghai Composite Index is approaching a very strong and important consolidation area. This area is from 2,600 to 3,000. The edges of the consolidation area are determined by narrow trading areas. The lower edge is between 2,600 and 2,650 points. The top edge is between 2,900 and 3,000 points.　　A strong trend force is required to enter the wide consolidation area between 2,600 and 3000. "Red K line" hint: This means that the index will have a few weeks to trade near the area below the consolidation belt before forming enough force to enter the main part of the consolidation belt above 2,650 points.　　This multiple temptations to the 2,600-point to 2,650-point region form at a critical juncture in the development of the international market. The trend of Shanghai stock index is very strong, development is very good. But it may still feel the impact of international market behaviour, particularly in the United States. The rebound in the US market has shown a drop in demand and the market is likely to fall sharply.　　This will have some impact on the Shanghai Composite Index. The "Red K line" predicts that a sharp pullback in the US market could lead to a pullback in the Shanghai Composite Index and a further temptation to lower support below 2,600. This pullback will not change the direction of the long-term upward trend.　　Four characteristics indicate the power of the trend. The first feature is the continuous separation of guppy composite moving average long term group.　　This suggests a lower likelihood of a trend change. The second feature is the position of the 2,400-point support.　　The lower edge of the guppy composite moving average long-term group is now equivalent to the 2,400-point support. The third feature is the value of the ascending trendline, which is also at 2,400 points. This means that there are two features that confirm the strength of the 2,400-point support. The fall in the Shanghai Composite Index is likely to be supported near 2,400.　　The market is less likely to fall below this position. The fourth feature is the behavior of Guppy composite moving average short term group. It again strongly separates. The lower edge of this set of averages may run up to 2,400 points over the next few days.　　This will confirm the strength of the 2,400-point support position. "Red K Line" tip: In the recent strong breakthrough to 2,650 points above the possibility of the international market due to the environment and reduce. As the US market weakens, the likelihood of a continuous consolidation and a multiple test of regional resistance from 2,600 to 2650 has increased.　　Decreased to the lower edge of the short group of the composite moving average line and the possibility of the support of the 2,500-point region increased. There is little likelihood that such behaviour would change the main upward trend. This is still a step trend development pattern. The weekly chart of the Shanghai Composite Index confirms the strength of the resistance near 2,600, so it is likely that the time of consolidation will be extended in the vicinity of this position. The stagnation of trend development is common.