The Trend Of A-Share Tends To Be Flat, Short-Term Or Repetitive

It is rumored that the International Monetary Fund (IMF) has urged China to finally withdraw from the stock market rescue measures taken before and return the market decision to ordinary investors. At present, the message has not received a clear reply or clarification from the relevant parties. A lot of funds took advantage of the trend to reduce their positions last weekend, leading to greater volatility in the A-share market.

last week A-share market At one time, it was very strong, but on Friday, there was a trend of rushing up and falling back. There were several waves of diving in the session, ending the six consecutive positive days of the Shanghai Stock Exchange Index. Moreover, due to the enlarged trading volume, the Shanghai and Shenzhen stock markets had a trend of large-scale decline. Against this background, the trend of A-share this week may tend to be flat.

The honeymoon period of the policy may gradually fade away

The recent six consecutive positive trend of the Shanghai Stock Exchange Index is inseparable from the efforts of CSF to protect the funds. Whenever the A-share market shows signs of diving, CSF and other funds will act decisively to protect the market. In addition, the measures to protect the market have also received public support, and the market popularity has been gathered. The Shanghai Stock Exchange Index has seen a K-line pattern of six consecutive positive days.

But on Friday, the market showed that the funds for protecting the market no longer seemed to be available. In this regard, the insiders said that on the one hand, it is because the index has reached 4200 points and is close to some medium-term moving averages, indicating that the A-share market has entered a period of choice for medium-term trends. In the later period, whether the trend is upward or downward, it needs to shake widely in this area and change hands sufficiently before choosing the direction of breakthrough. That is to say, in terms of classical technical theory, the 4200 point area is also the area where the Shanghai Stock Exchange Index repeatedly fluctuates, rubs and saws.

On the other hand, the market environment noise has increased again, and has not attracted the attention of relevant parties. It is rumored that the International Monetary Fund (IMF) has urged China to finally withdraw from the stock market rescue measures taken before and return the market decision to ordinary investors. At present, the message has not received a clear reply or clarification from the relevant parties. Unclear factors began to appear in the market fundamentals. Some hot money speculated that the policy honeymoon period was going away. Therefore, many funds took advantage of the trend to reduce their positions last weekend, leading to greater volatility in the A-share market.

Short line or repeated sawing

However, this week's trend is not too pessimistic. This is mainly because CSF, as the most powerful capital in the current A-share market, still has a strong market influence. Considering the commitment of "not selling a share" made by them in the previous trading days and other factors, it can be inferred that CSF still sticks to the securities market. So, at the beginning of this week, CSF The relatively abundant liquidity advantage will still affect the intraday trend of the A-share market. In other words, 4000 points and a line will face repeated competition.

However, as mentioned above, the 4200 point is the key point for the choice of medium-term trend, and it will not be conquered overnight. Therefore, the 4200 point may also become an important resistance level for short-term A-shares. That is to say, whenever the Shanghai Composite Index reaches 4200 points, the market may have selling resistance. However, when the stock index returns to around 4000 points, it is expected that CSF and other protection funds will also act decisively to support the market selling. As a result, the short-term trend of A-share may show repeated seesawing.

In the short term, the existence of a tangible hand seems to be a good thing, which can reverse the damage to market popularity and expectations of the market caused by the previous slump, but it also makes the market trend not smooth, it is difficult to move forward according to its own operating rules, and it is impossible to penetrate the decline, but it has buried negative factors for the future trend.

Therefore, in operation, investors are still not recommended to increase their positions, let alone chase the rise. It can track the trading opportunities brought about by repeated market tugging, such as State owned enterprise reform High distribution concept stocks, as well as new and sub new stocks, pig breeding industry stocks, military industry stocks, etc.