Category: Money tips Release Date: 2006-12-01
Recently, the tape clearly subject to transaction-intensive areas chunill pressure indexes were unable to break through several upside eventually forced to change down. The transaction-intensive areas are from the June 8 "blowout" to June 30 up to formation of Po Wei, and its vibration axis of 1100-point movements.
In theory, both the broad market or individual stocks, at a certain price range experienced a high proportion of changed hands, meaning that the cost of the market position will be to this price range movement, with time will be because of the accumulation of volume the formation of dense areas. Built-up areas will have the role of support and resistance, from the historical Quotes of view, the supporting role of built-up areas are often not very obvious, while the resistance is more obvious role. However, any transaction-intensive areas of the index or the resistance to the role of stock prices is only temporary, periodic, and intensive areas is unlikely to change the nature of market development trends, all of the transaction-intensive areas will eventually be broken.
Investors can break under the weight of the broader approach to select the mode of operation, in general, transaction-intensive areas breakthrough in mainly two ways:
One is the scrub-type breakthrough, that is, the upward broader market stalls transaction-intensive areas to launch shock waves through continuous scrubbing on a file-intensive areas, makes the hold-up loose chips, when the upward trend in the accumulation of kinetic energy reaches a certain degree, and then broke through. Investors can use this time-band mode of operation.
The other is a strong breakthrough, such a breakthrough is generally positive with significant support from institutional funds in the formation of large-scale intervention. For example: in 1999 the "5.19" Quotes that is so, good policy, under the impetus of the formation of the previous two years have been breakthroughs transaction-intensive areas. Such circumstances, investors can use chase mode of operation.
We are the cumulative trading volume in June from the analysis, transaction-intensive areas in the real chunill pressure is not large, the current stock due to short-term emergency while on his way through the adjustments. Moreover, the March 9, April 14 and June 27 the formation of a high-point decline in the trend line has just been a breakthrough, a brief withdraw sword Quotes broader market was also normal. The actual situation with the current market analysis, market outlook will be wash-style break-intensive areas to gradually absorb the pressure chunill.
When the stock transaction-intensive areas faced with chunill, investors need to focus on the following categories in operation in the stock:
First, to focus on high turnover of stocks.
A solid transaction-intensive areas are unable to withstand the high turnover scrubbing, the use of moving the cost of distribution judged, they will find that when stocks with high turnover, its shares traded above the dense area will quickly fall apart, through the high efficiency chips chips intensive distribution of the exchange will be transferred to the bottom of the stock, so that the original strong resistance area evolve into stronger support area. Therefore, investors need to be actively concerned about the high turnover stocks.
Second, attention away from the transaction-intensive areas of the stocks.
Such shares traded as far away from built-up areas, so the callback pressure is small, while the compensatory growth momentum large, suitable for short-term operation
Third, concerns have been relaxed through the transaction-intensive areas of the stocks.
The overall market leader in the early breakthroughs in intensive areas of the stocks traded, often leading the class is a strong plate or individual stocks, most of the mainstream funds to enthusiastically by the market concerned and Jiancang, investors can successfully break through deal-intensive areas of their choice after the aircraft involved.
