Selection Criteria for Leading Tech Stocks
Stock selection has long been a challenge for most investors in the A-share market. Amid current market conditions, many new clients of Winner Gann have raised questions about stock-picking strategies. Today, the editor of Winner's Academy will discuss the selection criteria for leading tech stocks, hoping to provide valuable insights.
How to Identify Leading Tech Stocks?
Two key criteria are proposed:
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Daily trading volume exceeding ¥100 million
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Breakthrough of critical price platforms
Why These Criteria?
The rationale is straightforward:
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¥100M+ daily turnover: Indicates active trading and strong market interest, ensuring better liquidity and capital support.
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Platform breakout: Signals expanded upside potential, enabling the stock to lead sector trends and boost market sentiment.
Case Study
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Fundamentals: The stock is a top player in the domestic software sector with leading industry positioning, solid fundamentals, and high volatility, offering significant profit potential.
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Technical Analysis: Fully aligns with the criteria.
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On August 9, it surged past key moving averages (5/13/21-day) with heavy volume, showing strong short-term demand.
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On August 10, it gapped up decisively, breaking a resistance platform since May and hitting new highs, confirming an upward trajectory.
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Follow-up
Amid broader market weakness, the stock retraced after peaking, testing its prior platform. Medium-term investors should monitor stabilization signals.
This concludes our analysis of leading tech stock selection. We hope these criteria prove useful. For more insights, stay tuned to our updates. Wishing you profitable trades today!
