No surprise! A-shares will definitely change dramatically next week. Do you know

March 10, 2024

The A-share market this week was indeed too lackluster,with five trading days mainly characterized by range-bound consolidation,and the market had no fluctuations at all.The ups and downs were completely restricted,and such a market situation usually occurs on the eve of a major market shift.

To be honest,encountering this kind of market trend in A-shares this week,I believe many investors would be tempted to curse,due to the fact that the market this week was too tormenting,seemingly having lost all investment value.Moreover,while the global stock markets were collectively rebounding and rising,A-shares alone did not follow suit,which is quite frustrating.In any case,the tormenting market of A-shares this week has passed,and we can only hope for a better market next week.

Next week,A-shares are bound to undergo a significant shift.

Indeed!This Friday,A-shares did send out two signals of a market shift,which were in terms of trend and volume.The specific situations are as follows:

1.The index is entirely in a downward trend.Currently,the center of gravity of the three major indices is still shifting downward,and the major moving averages are also gradually declining,forming resistance to the rise.From the perspective of the trend,it extends to a downward shift.Taking the Shanghai Composite Index as an example,the index dived at the opening of the afternoon session on Friday,with the bears exerting their strength,and the bears once again exerted their strength with a slight dive before the close.With these two diving actions,it proves that the bears are back to work,which implies that A-shares will undergo a downward shift next week.

2.On Friday,the "volume" of the Shanghai and Shenzhen stock markets once again reached a new low in the adjustment period.Recently,the volume of the Shanghai and Shenzhen stock markets has been maintained at around 600 billion,and on Friday,the volume shrank to 56 billion,which is a clear sign of a low volume.

When the stock market experiences low volume,it indicates that the market activity is very low,and investors are in a strong wait-and-see mood.It also suggests that the phase of decline is nearing its end.However,the appearance of low volume only indicates that it is close to the bottom,not a real stop.Perhaps another shift and a drop will truly hit the bottom.

Therefore,according to the trends of the major indices and the emergence of low volume,which have both sent out signals of a market shift,the probability of a downward shift next week is high.But even if there is a downward shift,there is no need for pessimism.A rapid downward shift is actually a good opportunity to buy on the dip.The reason is as follows:

The ups and downs of the stock market always have reasons behind them.For instance,it is essentially certain that there will be a significant shift in the A-share market next week.The real reasons are as follows:

Reason one: The overall market trend cannot deceive; of course,the trends of the major indices are still extending downwards.Generally,the bottom of the market is formed by falling,not by horizontal consolidation.Therefore,it is judged that after this week's horizontal consolidation over five trading days,there will be a change in the market next week.

Reason two: Following this week's low volume,there has been no corresponding low price.Typically,after a low volume,there is a final wave of bottom fishing to find the bottom.If we follow the rule that the low price appears after the low volume,it is expected that the market will change next week to find the bottom.

Reason three: At present,A-shares simply lack the momentum to rise.There is a shortage of funds,popularity,and confidence.Since the market cannot rise,one can only look for a downward trend.Only when the market falls to a point where it can no longer fall will there be the momentum to rise.Therefore,it is possible that next week,after the market changes and finds the bottom,it will stabilize and then usher in a new round of increases.

In conclusion,based on this week's performance,position,and environment of A-shares,the market has issued a change signal from the trend and volume on Friday.Since the change signal has appeared,the probability of a significant change in the market next week has greatly increased.Let's wait and see.

Of course,even if A-shares do experience a significant downward change next week,leading to a rapid short-term decline,do not be pessimistic.This is just a brief search for the bottom.On the contrary,one should value the good opportunity to buy low that the downward change brings.Once the bottom is found,a new round of increases is imminent.