Morning Trend | VSTECS shrinks volume to resist decline, is the valuation repair window for the IT sector coming?
VSTECS consolidated at a low volume yesterday, reflecting a weak recovery in the IT channel distribution sector, with participation enthusiasm cooling down. The market lacks significant positive news, and the focus has shifted to macro consumption data and industry order gaps. The trading volume during the day was low, with the stock price repeatedly testing the support level of HKD 2.00, and overall sentiment remains cautious. In terms of sector news, several IT distribution companies have seen order growth this year, but the overall data is below market expectations, slowing down the valuation recovery of the sector. Technically, the market has experienced several consecutive declines, and the MACD continues to show weak signals, limiting the willingness for right-side trading. Only sudden policy changes, industry chain events, or external catalysts during the trading session could bring short-term capital back. Currently, it is essential to combine changes in track news and the activity level of intraday trading to judge participation signals. If the main players regain confidence, the valuation recovery theme is expected to accelerate, but it requires actual incremental capital to drive it. In the short term, it is advisable to adopt a watch-and-act approach while controlling positions, with a high degree of caution against risks of weak rebounds
VSTECS consolidated at a low volume yesterday, reflecting a lack of recovery in the IT channel distribution sector and a cooling enthusiasm from participating funds. The market lacks significant positive news, with focus shifting to macro consumption data and industry order gaps. Trading volume was low during the day, with the stock price repeatedly testing the support level of HKD 2.00, and overall sentiment remains cautious.
In terms of sector news, several IT distribution companies have seen order growth this year, but overall data is below market expectations, slowing down the valuation recovery of the sector. Technically, the market has experienced several consecutive declines, and the MACD continues to show weak signals, limiting the willingness for right-side trading. Only sudden policies, industry chain events, or external catalysts during the day could bring short-term fund inflows.
Currently, it is essential to focus on changes in track news, trading activity, and other indicators to judge participation signals. If the main players regain confidence, the theme of valuation recovery is expected to accelerate, but it requires actual incremental fund support. In the short term, it is advisable to adopt a watch-and-act approach while controlling positions, with a high degree of caution against risks associated with weak rebounds
