Morning Trend | Mengniu Dairy tests resistance level, is a rebound window coming?
On November 27th, Mengniu Dairy fluctuated around the 14 yuan area throughout the day, with a moderate increase in trading volume. Recently, the dairy product sector has been relatively calm in terms of fundamentals, lacking new positive stimuli. However, the State Administration for Market Regulation proposed to strengthen food safety supervision, which has somewhat warmed the sentiment of certain dairy stocks, becoming a source of logic for some funds to buy on dips. During the range-bound phase, main funds have increased their willingness to position at lower levels, pushing Mengniu to test previous resistance levels again during the session. On the market, Mengniu Dairy has approached short-term resistance areas for three consecutive days. Although bullish momentum has somewhat recovered, the main trend has not completely reversed. There have been occasional buying spikes on the intraday chart, indicating that right-side traders are weighing risks and opportunities. If it can break through the upper edge of the platform with increased volume, a short-term rebound window is expected to open. However, it is also necessary to be cautious, as if the funds' wait-and-see sentiment intensifies, the possibility of a pullback to previous low support cannot be ruled out. From a technical perspective, the 14 yuan area constitutes a key phase, with this resistance being quite significant historically. In the short term, market focus is shifting towards positive catalysts and sector linkage. If there is an influx of new funds and new fundamental news stimulates the market, the stock price is expected to break through the range and initiate a new round of rebound. Otherwise, if trading remains sluggish, it will accelerate the divergence of funds, and the market may slowly digest. Currently, news catalysts dominate, and investors are advised to closely monitor regulatory dynamics in the food sector, sales data of leading companies, and changes in trading volume, while being wary of the rapid pullback risk after a failed breakout from the platform, adapting flexibly and appropriately controlling positions
On November 27th, Mengniu Dairy fluctuated around the 14 yuan area throughout the day, with trading volume moderately expanding. Recently, the dairy product sector has been relatively calm in terms of fundamentals, lacking new positive stimuli. However, the State Administration for Market Regulation proposed to strengthen food safety supervision, which has somewhat warmed the sentiment of certain dairy stocks, becoming a source of logic for some funds to buy low and replenish. During the range-bound phase, main funds have increased their willingness to lay out positions at lower levels, pushing Mengniu to test previous resistance levels again during the day.
On the market, Mengniu Dairy has approached the short-term resistance zone for three consecutive days. Although bullish momentum has somewhat recovered, the main trend has not completely reversed. There have been occasional buying spikes, indicating that right-side traders are weighing risks and opportunities. If it can break through the upper edge of the platform with increased volume, a short-term rebound window is expected to open. However, it is also necessary to be cautious; if the funds' wait-and-see sentiment intensifies, the possibility of a pullback to previous low support cannot be ruled out.
From a technical perspective, the 14 yuan area constitutes a critical phase point, with this resistance being quite significant historically. In the short term, market focus is shifting towards positive catalysts and sector linkage. If there is an influx of new funds and new fundamental news stimuli, the stock price is expected to break through the range and initiate a new round of rebound. Otherwise, if trading remains sluggish, it will accelerate fund divergence, and the market situation may slowly digest. Currently, news catalysts dominate, and investors are advised to closely monitor regulatory dynamics in the food sector, sales data from leading companies, and changes in trading volume, while being wary of the rapid pullback risk after a failed breakout from the platform, adapting flexibly and appropriately controlling positions
