3.10 Review: Yunnan Energy Investment faces divergence at high levels, 20cm trend accelerates, sentiment reaches a turning point

3.10 Review [Taogu Ba]

Hello everyone, I am Cycle Wei Yang, trading only with strategic cycles.

The market has stocks that double every month. The qualities of these doubling stocks: relentless self-improvement, virtue and tolerance.

First, let’s discuss yesterday’s viewpoint:

Yesterday’s Yunnan Energy was similar to the red finish at the end of trading on March 5th, leaving suspense. Today’s result was completely different: a gap down at open, then a rebound with no strength to continue falling. If I couldn’t find a good entry point to add positions for T+ trading, I just held the core position without changing.

Near midday, it rebounded, and stabilized above the moving averages in the afternoon.

Currently, I feel Yunnan Energy has reached the boundary between strength and weakness. If it drops further tomorrow, it might need to adjust down to the 10-day moving average. If it gaps down or the rebound is weak, I may withdraw first, then wait for a deep drop, and re-enter after a weak-to-strong reversal on the daily chart. If it continues to oscillate like today, I’ll be too lazy to move.

Yesterday, not going into Petroleum was correct. After yesterday’s reckless intraday surge, today’s panic sell-off was also a big drop, especially after the panic button was pressed again, resulting in a long-legged candle. This kind of game is fierce; we don’t hold the initiative—it’s a high-level game.

Compared to Petroleum, 20cm has shown new leadership. Ling Wei Technology closed today touching the 10-day moving average at 106%. I noticed this stock during the first limit-up double shot, but it wasn’t eye-catching then; funds were focused on Petroleum. It has quietly grown and now looks more like a stock that started quietly, accelerated, and is beginning to oscillate. It’s unlikely to continue accelerating.

The main theme for 20cm now is adjustment after limit-ups or large bullish candles, in a pattern of re-absorption. Stocks like Lianrui New Material, Kaishan Shares, Borui Data are worth paying close attention to for divergence opportunities.

Overall, the cycle hasn’t shown a clear leading rally; most are stuck around the 10-day 100% level, rotating and switching without a clear surge. Still waiting for a breakout player.

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Thanks to the three brothers above for their support.