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Key Resistance Levels in Focus as Indexes Show Divergent Strength
Chinese stocks advanced Thursday in a broad but unconvincing rally, with the ChiNext Index leading gains at +1.11% on merely 1.4% volume increase, signaling persistent caution among institutional investors despite technical improvements across major indices.
Market Snapshot
| Index | Change | Key Technicals |
|---|---|---|
| SSE Composite | +0.42% | Testing 3,394 resistance |
| SZSE Component | +0.87% | MACD golden cross forming |
| ChiNext | +1.11% | 5-day/10-day MA convergence |
Critical Technical Levels
- Immediate Resistance: 3,394 (May 21 high)
- Next Target: 3,417 (May 14 peak)
- Support Zone: 3,332-3,368 range
Sector Performance
Thursday’s rotation highlighted:
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- Computing Power:
- CPO/copper connection leaders rebounding
- 60-min MACD bullish across tech sub-sectors
- Consumer Staples:
- Beer sector showing early turnaround signs
- Regional brands outperforming expectations
- Emerging Themes:
- Solid-state batteries maintaining momentum
- AI phone concepts reactivating
Global Context
- Nasdaq Golden Dragon China Index +2.04% overnight
- Mixed US tech performance (Nasdaq +0.32%)
- Asian markets showing cautious optimism
Beer Sector Spotlight
Fundamental drivers for sustained outperformance:
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| Factor | Impact |
|---|---|
| Seasonal Demand | Summer peak season approaching |
| Margin Expansion | Q1 profitability improving industry-wide |
| Valuation | Historical P/E at 10th percentile |
Trading Strategy
- Short-term:
- Watch 3,394 breakout confirmation
- Prefer sectors with volume support (tech/beer)
- Risk Management:
- Maintain balanced exposure
- Trim positions at resistance levels
The market’s thin-volume advance suggests institutions remain selective, with Friday’s session likely to test conviction ahead of weekend policy expectations. Beer and computing infrastructure sectors offer relative stability amid ongoing rotation.
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