Hexun Investment Advisor Yang Lihua: The market remains within a range of fluctuations; how to grasp the rhythm?

The market today performed slightly better than expected, but overall it remains relatively weak. This phase is still characterized by sideways fluctuations.

Yang Lihua, an investment advisor at Hexun, analyzed that the trading volume is not very large, indicating that not many people are buying the dip. At the same time, the strength of the bullish candlestick at this level is not very strong, showing a bottoming out and rebound pattern. A doji pattern suggests that after a significant decline, some buyers step in to push prices up, but this lacks aggressiveness and continues the sideways trend. Looking at the indices, they all show similar behavior: the market demonstrates some resilience but lacks momentum. Currently, the overall indices are not particularly strong; they seem to have support and are not falling further, but there is no clear upward attack force.

From a broader market perspective, the number of stocks leading the gains and showing positive trends is relatively small. Today, there was a noticeable shift: sectors like chemicals and electricity started to decline again after previous gains. Last Friday, sectors like new energy, wind power, and nuclear power showed upward movement, but today they all dropped sharply. Meanwhile, technology stocks showed some small movements, likely in anticipation of NVIDIA’s GTC conference. Semiconductor and memory chip stocks became active, and some PCB component stocks showed some activity. However, these do not yet constitute a strong attack force; they are mainly driven by expectations and some capital inflows. Overall, the market currently lacks cohesion, with different sectors moving independently, and the sustainability of these moves is relatively weak—after a quick surge, prices tend to fall back.

Overall, compared to external markets, the Chinese A-shares remain relatively strong and resilient, giving us confidence in the future. The main trend continues to be range-bound, maintaining fluctuations above 4,000 points, with some opportunities for sector rotation and differentiation.

(Editor: Shao Xiaohui)

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