Recent circumstances have led to much noise in the Taiwanese stock market, with institutions forecasting a potential down then up pattern for this week. Last week, due to profit-taking before the Dragon Boat Festival, investor sentiment was quite cautious. On the 29th, the Taiwan stock market fell by 10.42 points, closing at 21,347.3 points, with a single day's trading volume of NT$460.736 billion, resulting in two consecutive weeks of declines, totaling a drop of 304.94 points, a decrease of -1.41%.

Reports indicate that the market is currently in a phase of high fluctuations after a significant rise, with concerns over foreign exchange losses for electronics stocks deepening due to currency market volatility, leading to a more conservative stance among investors.

It is suggested that investors focus on the following stocks in the short term: Everlight (6515), Jialin (3533), King Pak (2368), and Xinxing (3037).

According to analysis, the index is expected to still face resistance at the 21,600 level of the 5-day moving average. Additionally, as the TWD exchange rate returns to the 29 range, concerns over currency losses for electronic stocks are expected to deepen, leading to a cautious outlook. It is advisable for investors to target low-priced stocks, such as Winbond (2337) related to NAND Flash orders, or Walsin (2327) that may achieve full production capacity in the second half of the year.

Due to market volatility, Cathay Futures Securities report advises investors to focus on Everlight (6515) to enhance self-manufacturing capabilities and strengthen risk management to respond to global economic uncertainties. Jialin (3533) is expected to benefit from upgraded specifications of AI server new products, and King Pak (2368) sees strong demand for AI servers, driving an increase in orders for high-end PCBs. Xinxing (3037) anticipates an increase in BT board prices due to extended lead times for materials.

Investors are reminded that investing involves risks and they should carefully evaluate their decisions and take responsibility for the investment outcomes.