Morning Trend | ND PAPER High Dive Tempts Many, Band Window or Risk Threshold?

ND PAPER (2689.HK) recently experienced a sharp drop after a period of high volatility, attracting significant market attention regarding the critical opportunities and risks. After retreating from the recent high, the daily MACD has shown a significant death cross, and the KDJ continues to decline, with trading volume greatly increasing, indicating that some major funds are withdrawing significantly. Throughout the intraday trading, there have been multiple instances of high turnover rates leading to sell-offs, with fund sentiment rapidly deteriorating, intertwining short-term arbitrage and panic selling. From a fundamental analysis perspective, the paper manufacturing sector, in which ND PAPER operates, is under pressure due to rising costs of raw materials and transportation, leading to performance challenges. The intensified sector rotation has caused some funds to cash out. However, the company's long-term logic remains robust (such as environmental protection and overseas expansion), which keeps medium to long-term funds optimistic, presenting both a window for trading and a critical risk point. In the short term, ND PAPER has strong support at the previous high trading volume area and key moving averages. If there is a significant drop in volume followed by a stabilization with reduced volume, a technical rebound may occur, allowing trading funds to attempt to buy at lower prices. However, if the trading volume does not significantly contract and panic sentiment continues to release, the market may still face further adjustment tests. In terms of strategy, it is essential to closely monitor intraday trading volume and the overall sector trend, seizing opportunities for low buying during pullbacks and when sudden movements strengthen, while avoiding blind bottom-fishing that could lead to being trapped