Morning Trend | DONGYUE GROUP sees increased trading activity, is a new low window for the chemical market approaching?

Dongyue Group (189.HK) experienced a significant drop in trading volume on the 16th, with funds massively cashing out. The intraday low was repeatedly refreshed, and market sentiment turned sharply pessimistic. The chemical resources sector faced overall selling pressure, with a surge in intraday trading volume, and the weak cyclical chain continued to transmit. From an industry perspective, the latest data shows that the demand recovery is limited, and the downstream operating rate is below expectations, leading to caution among cyclical stocks. At the end of the year, institutions tend to lock in profits, and large investment decisions are generally delayed at the quarter's end, putting pressure on some chemical prices and damaging performance expectations, prompting a rapid withdrawal of funds. On the daily technical chart, the support at HKD 4.93 is just around the corner, with multiple moving averages firmly suppressing rebounds, and the MACD green bars widening, indicating continued withdrawal by the main force. The differentiation within the entire sector and the risk of new lows are rising, and once the support is breached, a rapid bottoming out may occur. In the short term, unless there is a price reversal or favorable policy, the probability of differentiation in the chemical market and probing new lows is high. Investors need to closely monitor opportunities for volume stabilization and policy catalysis while cautiously controlling withdrawal risks