The Shanghai Stock Exchange will look to fill the vacancies first! Technology or the return of the king

1. Overview of the General Trend

The Shanghai Composite Index performed slightly stronger than expected on Friday. Despite the sharp decline in U.S. stocks overnight, it still opened lower and moved higher, and was holding close to its 30-day moving average in late trading. The shrinkage stabilized throughout the day. Therefore, here we will first look at filling the gap upward at the beginning of the week, focusing on whether the gap can be filled. It is expected that the gap will be filled by mid-week at the latest. The overall trend is still understood to be one of two situations: breaking the position and digging a hole, or strong shock. Looking at the weekly line, this week it has not fallen below the 10-week moving average, but it has not stood firm on the 5-week moving average. It is temporarily understood to be a shock consolidation at the weekly level. The best trend is still not to break the 10-week moving average, and then resume the upward trend after repeated shocks.

Beijing’s net outflow of funds on Friday was 4.1 billion, and the top three sectors with net inflows were civil aviation, tourism, and jewelry. In terms of sector gains, gallium nitride rose more than 4% to lead the gains in both markets, followed closely by semiconductors, which rose nearly 3%. Looking at the number of companies with daily limit, GEM has 12 companies with daily limit, new energy vehicles with 5 companies with daily limit, green lighting companies with 4 companies with daily limit, and semiconductors and chips with 4 companies with daily limit respectively. Overall, the GEM index is still the strongest among the five major indexes. The market outlook will still focus on whether it can hold on without breaking the position, thereby driving other indexes to return to their upward trend.

General situation analysis: The Shanghai Stock Exchange Index is digging a hole, but the GEM is still strong. Next week we will see whether the Shanghai Index can fill the gap upward. If not, beware of falling back to near the 60-day line for support. As for the midline, both the Shanghai Stock Exchange Index and the GEM are still regarded as the main rising waves at the monthly level. The former is at the bottom, and the latter is more similar to an upward relay.

2. Sector Midas

The third generation of semiconductors has emerged, and gallium nitride, as the branch with the deepest roots, will undoubtedly continue to grow stronger. Looking at the sector index, it rose more than 4% on Friday, leading the gains in both markets, and also issued a daily-level macd buying point. At the same time, in the technology sector, lithography machines and semiconductors have followed the surge, and are expected to issue daily-level buying points at any time next week. These two sectors and directions can be used as alternative directions for tracking the main line of technology.

3. Capital trends going north

Last week

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The above is Shengjun’s sharing of the current market trends, hot sectors and main capital movements. It does not constitute investment advice. If you operate according to this, you will be responsible for your profits and losses.