Hexun Investment Advisor Liu Changsong: A-shares experience a huge shake, closing steadily with a doji star. What is the outlook for the future?

A-shares experienced a major shakeout, with increased volume and a steady formation of a doji star. There are many external disturbances, but today’s A-shares movement is relatively stable.

Hithink WiseNet Investment Advisor Liu Changsong said that from today’s structural trend of A-shares, the supporting buying power is very strong. We saw today’s volume reach 2.67 trillion yuan, an increase of 450 billion yuan compared to the previous trading day. Today, the market opened significantly lower and fluctuated, but managed to close with a doji star. The Shanghai Composite Index closed as a doji star, while other indices showed false bullish candles, indicating that buying interest exists, but the willingness to aggressively push higher is not strong. The reason is simple: this is a slow rebound within a consolidation range, moving within a box pattern. At this point, choosing the right direction is especially important, as the main trend is gradually becoming clearer.

We saw that in the morning, photovoltaic stocks rose 1.91%, and software services closed up 1.7%. Both sectors experienced noticeable dips earlier in the day. Software services once fell more than 2.5% in the morning. From an index perspective, the market is relatively stable. The Shanghai Index closed down 0.67%, at 4,096 points, after opening at 4,098 points, so the opening and closing prices are nearly the same. This means the trading volume was mainly completed during the day, indicating relatively strong support. The Shenzhen Component Index also formed a false bullish candle, opening lower and closing higher, with significant volume throughout the day, showing clear support from buyers. Although the close was down 0.74%, the decline was narrower than the morning’s decline, and the ratio of advancing to declining stocks suggests a short-term recovery. The extent of this recovery depends on external disturbance factors. My clear view is that both the Shanghai and Shenzhen indices are near strong support levels, so low buying is not a problem here. The key risk is chasing stocks blindly in this area.