Taiwan Stock Market Falls Below Quarterly Line – Time to Buy the Dip? Du Jinlong Reveals 'Short-Term Bottom Signal': Stability Assured If This Level Holds

As the broader market experiences a significant pullback, many investors are gripped by fear, hesitating to enter and falling into the psychological trap of 'not daring to buy at lows, yet unable to buy at highs.' But how do professional investors and technical analysts view this recent correction and potential rebound signals? This episode of 'After Work, I'm Coming to Your House' features host Tsai Shang-hua and veteran Taiwan stock market expert Du Jinlong, who break down the market dynamics in detail.

Taiwan Stock Market's Largest Decline! This Key Price Level Must Not Be Broken

Du Jinlong explains that in technical analysis, a stock price breaking below a key moving average doesn't necessarily signal the start of a bear market. Especially according to the 'Grahan's Eight Rules,' the first breach of the quarterly line often triggers a technical rebound.

He further emphasizes that the current market's most critical level is the recent correction low around 41,900 points. If this level is not broken for three consecutive trading sessions going forward, it can be seen as the gradual formation of a short-term bottom. This doesn't mean an immediate V-shaped recovery, but rather that a short-term bottom is established, and the market begins to enter a consolidation phase.

TSMC: Gradual Accumulation with a 'Buy Low, Sell High' Strategy

Du Jinlong's current investment focus remains on TSMC. He reveals that throughout June, he consistently applied a 'buy low, sell high' strategy, previously locking in profits around NT$2,460. However, after the stock price pulled back, he initially planned to buy back immediately. Fortunately, the trade didn't execute that day, and the market saw an even sharper correction the next day, giving him a better entry opportunity.

Du Jinlong notes that on the day TSMC opened with continuous declines, he chose a staggered accumulation approach rather than a single large purchase. He points out that recently, TSMC often faces heavy selling pressure in the late trading session, with potential single-day drops of up to NT$40. Therefore, staggered buying effectively lowers entry costs and avoids excessive volatility from a full position.

He reiterates that in highly volatile markets, discipline is more important than prediction. Truly successful investing isn't about buying at the absolute bottom every time, but having the courage to steadily deploy capital according to a predefined strategy when the market is in panic.

Want to know which specific stocks Du Jinlong is targeting in this dip-buying move? For more exclusive content, tune into the 'After Work, I'm Coming to Your House – Member Edition,' where host Tsai Shang-hua and veteran Taiwan investor Du Jinlong reveal all.