940 Billion in Volume Contraction Hides Clues! Exclusive Data Reveals Selling Pressure Turning – Will Two Dominant Players’ Record Revenues Trigger the Next Move?

Is the contraction in Taiwan's stock market a sign of bullish exhaustion or a strong consolidation? Exclusive buy-sell data indicates that selling pressure has started to ease, while short-covering momentum is still building. With both thermal solutions and ASIC leaders achieving record-high revenues, product specification upgrades and project volume ramp-ups are solidifying their industry advantages. Locking onto this critical turning point is precisely the right moment to prepare for the next market leg.

〈Volume Contraction Reflects Cautious Buying – Position Rotation Still Underway〉

Today’s trading volume in Taiwan’s stock market was approximately NT$940.4 billion, close to the monthly average. The weighted index closed down 214 points at 44,396, a 0.48% decline. This volume contraction differs from previous days when certain stocks hit price limits and trading was compressed. This time, after pushing the index to higher levels, market appetite for chasing prices turned cautious. TSMC (2330-TW) faced late-session selling pressure, and MediaTek (2454-TW) weakened simultaneously, dragging the broader market lower. However, Hon Hai (2317-TW) rose逆势, and the GreTai Securities Market Index closed at 391, up 1.99%, indicating the market isn’t broadly weakening but undergoing a shift in capital between high- and low-tier stocks.

Currently, the GreTai index’s monthly line remains downward-curving, and the 390-point level represents prior head-and-shoulders neckline resistance. Short-term pullbacks and volatility are normal after a strong rebound—a typical phase of position rotation. According to exclusive data from Instructor Zhilin Chen, today’s buying volume increased compared to yesterday, while selling volume began to decline. Although selling pressure remains above the monthly average, it is gradually easing. The number of strong-performing stocks is also recovering. Currently, U.S. markets remain range-bound at high levels, U.S. Treasury yields have slightly retreated but not significantly, and oil prices are stabilizing. At this stage, investors should maintain appropriate positions and observe whether the rotation-based buying momentum can continue.

〈Thermal Sector Shows Strong Group Momentum – Revenue Growth Supports Market Confidence〉

The strongest theme in today’s market remains the AI thermal sector. Twinhead (3324-TW) reported July revenue of NT$3.765 billion, up 38.54% month-on-month and 116.7% year-on-year—setting a new all-time monthly high. This drove its stock price to hit the daily limit and re-enter the ‘thousand-dollar stock’ club. This reflects the onset of peak shipment season for liquid cooling systems, as AI server specification upgrades simultaneously boost average product pricing. This strength has lifted Chiun-Cheng (3017-TW), Acbel (2421-TW), Foxconn Interconnect Technology (2354-TW), and Fuh Sheng Da (6805-TW) together, showing clear sector-wide correlation. This is a signal that market capital recognizes the industry’s direction—because as AI server power consumption keeps rising, liquid cooling penetration increases, and the industry structure continues to grow upward. Chiun-Cheng (3017-TW)’s future operations are equally promising, though traders should wait for stable price-volume patterns before entry.

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〈ASIC Enters Mass Production Phase – High-Quality Stocks Awaiting Gradual Pressure Relief〉

Creative Electronic (3443-TW), a leading ASIC player, reported July consolidated revenue of NT$5.769 billion, up 17.1% MoM and 158% YoY—another record high. While gross margins dipped in Q2 due to product mix changes, the main reason was the increased proportion of lower-margin turnkey mass production business—not weak demand. This indicates that commissioned design projects are progressively entering mass production. After CPU project volumes ramp up, backend wafer mass production services will grow rapidly. King Yuan Electronics (2449-TW), a key semiconductor testing stock, currently faces resistance concentrated at the lower edge of its six-month range, overlapping with the downward-curving monthly line. Based on monthly moving average offset timing, in about one to two weeks, as the offset point moves lower, technical pressure may gradually ease. As long as AI chip testing demand remains unchanged, once position digestion completes and volume returns, core quality stocks still have room for substantial gains. For now, maintain appropriate position sizing—don’t exit entirely just because of index red or green. Patiently monitor volume, buying continuity, and changes in monthly line pressure to seize the next stable market wave. We invite investors to download the [Chen Zhilin Analyst App], where real-time updates are shared instantly. Use data to master market rhythm. Weekly updates to the margin trading watchlist help you avoid risks and lock onto opportunities.

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Source: Analyst Chen Zhilin / Kaixu Investment Consulting

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