Analysis of the relative strength of futures in the internal market

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How to analyze the strength and weakness of internal market futures? The method is similar to stock strength analysis , taking the chemical sector as an example.

Look at the index

Open the Wenhua Finance and Economics Sector Index.

Screenshot-2023-08-14-at-11.31.21

The price pressure level retreated for the first time after encountering resistance, and now challenges the previous high, and may break through or form an M head.

Next, select strong and weak varieties from the index components.

Strong variety

Methanol, rising in a wedge shape, may relay a breakthrough or peak.

Screenshot-2023-08-14-at-11.35.22

Vulnerable species

Ethylene glycol, M head plus flag-shaped relay, standard form.

Screenshot-2023-08-14-at-11.33.54

to choose

There is no weakness in the index, but there are strengths and weaknesses in each variety. If you go long, you can go long when the index bottoms out, which is more cost-effective. Glycol is perfectly positioned if shorted.

How do you choose?

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