Hexun Investment Advisor Wang Zhenyu: Regional disturbances continue over the weekend, how will A-shares move next week?

Will it drop again tomorrow? The regional disturbances over the weekend have not weakened at all. Crude oil futures continue to rise, the NASDAQ keeps falling, and the market has already broken below the 20-day moving average. How will the A-shares move next week?

Wang Zhenyu, an investment advisor at Hexun, analyzes that first, look at the current trend of the market. On Friday’s close, the Shanghai Composite Index has already fallen below the 20-day moving average, which is a dividing line for trend strength. Currently, the index is exchanging chips around 4120, a core area of previous high trading volume. More importantly, the market is in a correction cycle characterized by divergence resonance at daily and weekly levels, meaning both the time and space for adjustment need to be fully digested.

From a technical perspective, under the pressure of multi-cycle divergence, it is difficult to form a main upward trend directly. Note that there are no signs of external disturbances easing at all. Therefore, my forecast remains that next week will continue to see sideways consolidation within the core range of around 4120, and there is even a possibility of further downward testing of the 60-day moving average. Strategy-wise, avoid chasing highs, maintain moderate positions, and since there is no trend of continuous large gains leading to a main rally, we should wait patiently and go with the flow.