#Bank Sector Leads the Way, Driving Strength in Other Sectors
The Shanghai and Shenzhen stock markets opened lower and moved higher in the morning, and fluctuated narrowly in the afternoon. Finally, the Shanghai Composite Index rose 0.27%, the Shenzhen Composite Index rose 0.14%, the ChiNext Index fell 0.04%, the CSI 50 Index fell 0.72%, and the BeiEX 50 Index fell 0.86%. The two markets traded more than 770 billion yuan. In terms of sectors, banks, transportation, and coal led the gains, while military industry, media, and computers led the losses.
1. Shanghai Composite Index Opens Lower and Moves Higher, Reclaiming Multiple Short- and Medium-Term Moving Averages
The Shanghai Composite Index opened lower today, and after 45 minutes of tug-of-war between bulls and bears, the bulls began a unilateral upward attack, reaching the highest point of the day at 11:05 am, followed by a pullback. After the opening of trading in the afternoon, the index fluctuated narrowly, and regained its upward momentum at the end of the trading day, successfully reclaiming multiple short- and medium-term moving averages.
2. Bank Sector Leads the Way, Driving Strength in Other Sectors
On the market today, the bank, transportation, and pharmaceutical sectors led the gains. Among them, the bank sector rose all the way in the morning, and instead of falling when the broader market reached a high and pulled back, it continued to rise, and the gain continued to expand. Banks are the sector with the largest weight in the stock market, and their steady rise has driven other sectors to gradually strengthen.
3. Index Takes a Small Step Forward and Reaches a New Level on the Technical Front
At present, the 5-day, 10-day, 20-day, 30-day and other short- and medium-term moving averages of the Shanghai Composite Index are all around 3045 points. Today, bulls and bears have repeatedly pulled and sawed around the short- and medium-term moving averages. The index seems to have risen by a small amount, taking only a small step forward. However, it successfully broke through the resistance of the four short- and medium-term moving averages at the close. From a technical point of view, it is a big step forward and has reached a new level.
