Morning Trend | EMPEROR WATCH&J approaches support, can short-term funds make a quick move?

Emperor Watch & Jewelry (887.HK) saw a continuous decline during yesterday's trading session, gradually approaching the short-term strong support zone at HKD 3.90. As a representative of the jewelry retail industry, the company's overall performance has been mediocre recently, with the consumer electronics and commodities sectors being significantly more affected by market trends than the jewelry mainline. There has been a noticeable outflow of main funds, with the market dominated by risk-averse and defensive operations. From a macro perspective, international gold prices have shown limited fluctuations after the Christmas holiday, providing weak support to the jewelry industry, lacking dominant positive factors. Funds are gradually shifting towards high-elasticity sectors, and the consumption upgrade narrative has been significantly discounted from a short-term funding perspective, with the industry lacking catalysts. The market's rebound has been weak, and trading volume has remained low for an extended period, with only sporadic funds attempting to accumulate at low levels, failing to trigger effective follow-up from major players. In terms of technical indicators, the MACD remains in a weak position, the short-term KDJ is weakening, and the bullish arrangement of moving averages has been broken, with the stock price operating below multiple pressure lines. The support at HKD 3.90 is limited, and if this defense fails, it may lead to a new round of lows. The resistance above is at HKD 4.18. In terms of operational advice, investors should pay attention to unusual movements and uplifting signals from sudden news. Currently, the right-side trend has not yet formed, and short-term operations lean towards defense. If there is no significant volume rebound, it is advisable to cautiously monitor bottom support and wait for signals of improvement from policies or the industry before making large-scale additions. Overall, Emperor Watch & Jewelry is currently close to the range support, with clear characteristics of fund outflow and a strong weak market atmosphere, necessitating caution against the risk of new lows