Morning Trend | HUTCHMED is sluggish and building a bottom, while funds in the pharmaceutical sector await divergence signals?

HUTCHMED (13.HK) closed again in a weak pattern yesterday, with the main funds basically sidelined throughout the day, highlighting a cautious atmosphere with low trading volume. On the technical side, MACD and short-term moving averages remain bearish, with the stock price breaking through multiple previous support levels, significantly undermining bullish confidence. Recently, the pharmaceutical sector has continued to suffer from policy risks and a slowdown in new drug approvals, leading to an increase in risk-averse funds and a noticeable decline in overall capital activity. The news front is temporarily quiet, lacking major collaborations or research breakthroughs, with limited new catalysts within the sector. In the past three days, the adjustment of the medical insurance catalog has fallen short of expectations, and the anticipation for a new round of "volume-based procurement" has increased, putting pressure on pharmaceutical stocks, especially in the innovative drug sector. From the market perspective, HUTCHMED's trading is at a low point, with the main players being extremely cautious, and short-term bullish momentum has dropped to a freezing point. The market is paying attention to whether the previous low points provide effective support. If trading volume increases during the session and there is a marginal warming of policy support, a technical rebound may occur. However, if actual inflows of funds remain scarce, the risk of a weak bottom-seeking trend still exists. Currently, there are significant divergences within the sector, and managing positions and operational rhythms has become a hot topic, with most funds choosing to remain cautious or adopt a light position approach