Morning Trend | HOME CONTROL shrinks in volume and rebounds, is it a real reversal or a capital trap?

HOME CONTROL (1747.HK) recently experienced a volume-contracted rebound after a significant decline, with the K-line stabilizing above the 5-day moving average. The daily MACD has formed a golden cross, indicating initial signs of a technical bottom. However, it is worth noting that the overall trading volume during the rebound has not significantly increased, and the tug-of-war between bulls and bears continues. It remains to be seen whether the main funds have truly changed hands. The sustainability of the current rebound mainly depends on the follow-up of incremental funds and the repair of market sentiment. If the low-volume rebound continues today or if the trading volume gradually shrinks, one must be highly vigilant about the risk of a "bull trap" market. If the overall market environment warms up and the sector's linkage effect strengthens, the main funds may take advantage of the volume contraction to wash out positions and then launch a renewed offensive, achieving the expected technical reversal. In the short term, it is crucial to monitor whether the 5-day and 10-day moving averages can be effectively maintained, as well as any significant intraday large order movements. In summary, while HOME CONTROL shows initial signs of warming, the quality of the rebound needs to be verified by the funds. It is advisable to remain cautious in operations and wait for stronger volume-price confirmation signals before participating, guarding against a rapid reversal after the main funds wash out positions