After a strong session after the Spring Festival, the Shanghai Composite Index successfully regained the 3,000-point mark, hitting a new high in the past three years. Many investors cheered, believing that the bull market was coming, and they should seize the opportunity to increase their positions and chase the rise. However, the market is always full of uncertainties, and next week A-shares will usher in an important moment of change, which may change the current trend. So, how will A-shares change next week? How will the market go? Let's break it down.
First of all, from a technical point of view, the Shanghai Composite Index has encountered strong pressure levels near the January 2018 high of 3,100 after breaking through 3,000 points. This is an important psychological juncture and a historic resistance level, once broken, it will mean that A-shares have entered a new upward cycle. However, at present, the Shanghai Composite Index has not reached this level, but is around 3000 points**, indicating that the market has not formed enough upward momentum and needs more funds and confidence to support. Next week, if the Shanghai Composite Index can break through 3,100 points, then A-shares will usher in a big white line of change, the market will enter a rapid stage, all sectors will have better performance, investors can appropriately increase, follow the mainstream trend.
Secondly, from a fundamental point of view, next week A-shares will usher in an important policy benefit, that is, the convening of the National Two Sessions. The two sessions are a political event at the highest level in China and an important guide for China's economic and social development. During the two sessions, a series of major decisions and plans will be introduced, involving the country's finance, currency, taxation, finance, science and technology, education, medical care, environmental protection and other fields, and the impact on the field is far-reaching. Generally speaking, during the two sessions, the market's sentiment will be more optimistic, and the expectations for the future will be relatively high, which is conducive to the market. Next week, if the two sessions can send a positive signal, such as increasing fiscal spending, reducing the tax burden, expanding domestic demand, promoting innovation, optimizing the business environment, etc., then A-shares will usher in a moment of change in policy dividends, the market will enter a stable stage, all sectors will have better opportunities, investors can adjust appropriately, pay attention to policy guidance.
From the perspective of capital, next week A-shares will usher in an important capital change, that is, the inflow of foreign capital. Foreign capital is an important participant in the A** field and an important driving force for the A** field. The inflow of foreign capital can not only increase the activity and liquidity of the market, but also improve the valuation level and international influence of the market. Recently, due to the recovery of the U.S. economy and the expectation of inflation, U.S. interest rates and the U.S. dollar have risen, resulting in capital outflows from some emerging markets, and there is also some pressure on the A** market. However, in the long run, the steady growth of China's economy, the low valuation of the A** field, and the improvement of Sino-US relations will attract more foreign investment into the A** field. Next week, if foreign capital can re-increase the allocation of A-shares, then A-shares will usher in a moment of change in capital increment, the market will enter a sustained stage, and all sectors will have strong performance, and investors can appropriately grasp the opportunity to follow the direction of funds.
Next week, A-shares will usher in an important moment of change, and the market will likely have three different trends, namely the change moment of the long white line, the change moment of steady **, and the change moment of continuous **. These moments of change are all good for the A** market and opportunities for investors, but they need to adopt different strategies according to different situations. In general, the risk of next week's A** market is relatively small, and there are relatively many opportunities, and investors can actively participate, seize the opportunity, and earn income.
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