Hexun Investment Advisor Gai Yinan: Shanghai Composite Index Oscillates and Adjusts, Will There Be Further Pullbacks in the Market?

Shanghai Composite had a safe day with a long lower shadow left here. Is a correction coming next? Huaxun Investment Advisor Gao Yinan believes the correction limit is around 4,000 points, and today’s focus is on this fluctuation, mainly around the gap, repeatedly testing it. It’s very difficult to break through 4130 because last Tuesday’s bearish candle not only failed to recover the global market, but Japan, South Korea, and the US also didn’t recover. There’s still a lack of full understanding of this situation.

Let’s switch to the market chart for an explanation. The Shanghai Composite is okay here without a gap, but the Shenzhen Market, ChiNext, and the STAR Market all have gaps. Therefore, we believe these gaps will inevitably be filled in the future.

Filling these gaps may cause the index, including the Shanghai Composite, to consolidate and fluctuate for a while. If the news is positive, we might follow the upper trend line; if the news is less favorable, it could dip lower. The market is oscillating within this range, waiting for the major indices to fill these gaps before a new trend can emerge.

Regarding the electric power sector, it hit a new high again today and closed with a bullish line with no upper shadow. Today’s leading stocks still performed well, but many of the new highs experienced significant corrections. A new batch of wind power stocks has emerged, switching within the electric power sector, but overall, the sector continues to trend upward.