[Red Envelope] Ultra-short Upgrade: Make good use of range fluctuations to navigate through tough conditions

This week’s environment is highly unstable due to the impact of the Middle East conflict. Besides the sharp fluctuations in oil and gas sectors, other concepts and sectors are difficult to achieve stable trends. However, since the war concept is sudden and unpredictable, it exhibits high volatility and uncertainty, making it unsuitable for passive observation and intervention.

Given the market’s volatile and unpredictable environment, and the lack of a leading position in oil and gas for aggressive entry, seeking opportunities within high-recognition, consensus-driven groupings for range-bound fluctuations is an effective strategy to navigate the chaotic environment. We can see that many market-recognized high-recognition leaders, including previously discussed Pingtan Development and Shenjian Shares, have maintained relatively stable range-bound movements during periods of market instability or transition. Therefore, this week’s environment also provides an opportunity for high-recognition range-bound groups to wait and observe for directional clues.

Visual examples of range-bound patterns:

GCL System Integration:

Hua Sheng Tiancheng:

Tefa Information:

The challenge lies in control.
Since it’s a range, funds are consolidating here, oscillating and choosing a direction—upward or downward. We need to respond promptly when trends change. If the price breaks below the support level of the range, it’s necessary to exit and avoid wishful thinking. If you are confident in the logic and concept, wait until it returns to the range before continuing to observe.

On choices:
Always select stocks with high market recognition and high identification. Latecomers, follow-the-leader stocks, or unknown stocks without commonality are unlikely to garner unified capital recognition and form a group. Without a group, there’s no consensus or divergence, and no range-bound fluctuations.

This method is quite challenging and not suitable for beginners to observe.

Next week outlook:

The index has been oscillating at high levels since January within a broad range, clearly showing the current index is in the middle of that range. The trend is expected to continue mainly in oscillation, waiting for a breakout above or below the range.

In terms of sectors, the electric power coordination sector is expected to continue next week.
Key stocks: Shun Na Shares, Han Lan Shares, China Western Electric, Yueneng Holdings, etc.

Affected by the Gulf conflict, oil and gas chemicals will still fluctuate.
Key stocks: Intercontinental Oil & Gas, Jinniu Chemical, Chitianhua, Jinchengda, etc., which have high market recognition.

In terms of computing power, Taji Shares, Zhuolang Intelligent, Tuowei Information, Hua Sheng Tiancheng, etc., are favored by the market.

Biopharmaceuticals are listed as pillar industries; their continuation will be observed next week before making further judgments.

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【Important Notice】: The above is only a sharing of ideas and does not constitute investment advice. The market carries risks; invest cautiously!