Technical Market Analysis: Chinese assets have become a safe haven amid Middle East conflicts, with A-shares and Hong Kong stocks collectively moving into an independent trend; the Shanghai Composite Index is expected to show a minor technical low on Tuesday.

How can AI technical analysis predict the signal of a small low point for the Shanghai Composite Index on Tuesday?

On March 16, amid escalating US-Iran conflicts and pressure on global markets, A-shares bottomed out and rebounded, forming a long lower shadow. According to exchange data, the Shanghai Composite fell 0.26% to 4,084.79 points; the Shenzhen Component Index rose 0.19%; the ChiNext Index increased 1.41%; the CSI 300 gained 0.05%; and the STAR 50 rose 0.83%. Additionally, the Hong Kong market performed strongly, with the Hang Seng Index surging 1.45% and the Hang Seng Tech Index up 2.69%, making Chinese assets a safe haven.

A total of 2,747 stocks in the Shanghai and Shenzhen markets rose, 2,301 declined, and 143 remained unchanged. The total trading volume was 2.33 trillion yuan, about 749.87 billion yuan less than the previous trading day, with net outflows of 43.085 billion yuan from major funds.

Themes such as storage chips, fluid recovery, aquaculture, Alibaba chips, nano-silver, and deep-sea technology led gains, with multiple themes hitting daily limit-ups; meanwhile, rebar steel, computational collaboration, zinc, precious metals, antimony, and steel supply reforms saw the largest declines.

Looking ahead, senior analyst Xu Xiaoming pointed out that on March 16, the market bottomed out and rebounded, forming a small doji with a long lower shadow. There have been three such bottoming rebounds this month—on March 4, March 9, and the current day—showing relatively strong resilience, with each decline being pulled back.

Xu Xiaoming analyzed that the formation of the top structure on the daily chart has lasted nine trading days. Although in an adjustment phase, the index has moved sideways without falling, indicating strong performance. The cycle corresponding to the daily top structure is 24 days; currently, more than half of this period has passed. Previously, the trend was unpredictable, but the recent performance reflects market strength.

The current market risk has been partially released but not completely. On the 60-minute chart, there is a minor bottom consolidation. If a structure forms the next day, it can be considered the formation of a small low point; if the consolidation disappears, further waiting is needed. Xu Xiaoming mentioned that there was bottom consolidation on the 90-minute chart earlier, but it disappeared by the close of that day. The 60-minute cycle is small, and the index’s coordination is average, so only a small low point can be identified; a large low point cannot be determined. The next day, focus should be on signals from the 60-minute cycle.

Risk warning: This article does not constitute investment advice. The stock market carries risks; invest cautiously.