Morning Trend | YH ENT rises on low volume, momentum in the entertainment sector remains uncertain after emotional divergence

On January 22, during intraday trading, YH ENT (2306.HK) saw a short-term price surge, repeatedly testing the recent high area, but the trading volume did not increase correspondingly, indicating a slight lack of upward momentum. The entertainment sector has recently experienced frequent fluctuations, with the A-share film and television concept continuing to strengthen, stimulating enthusiasm in the Hong Kong stock market for the same sector. As an important leading player, YH ENT attracted increased capital attention for a time. Currently, the upward trend is more driven by thematic funds, with significant intraday fluctuations, as prices repeatedly approached technical resistance zones but failed to achieve a breakthrough. The trading style of speculative funds is characterized by quick in-and-out transactions. On the news front, the company has not released any major announcements recently. Last week, market expectations surrounding the relaxation of short video regulations ignited enthusiasm across the cultural and entertainment concept sector. Investors interpreted the marginal policy benefits positively, driving funds to flow into concept stocks for catch-up gains. YH ENT, driven by sector rotation and emotional resonance, tested the upper edge of the dense chip area multiple times during the day, but the main funds' willingness to chase prices was limited, failing to generate sufficient follow-up trading volume. Meanwhile, some individual stocks in the IP concept and newly listed stocks also saw a transition from old to new. From a technical perspective, the MACD and KDJ indicators have warmed up in the short term, but there is a divergence with the trading volume performance, indicating significant skepticism about the sustainability of the trend. A key observation will be whether new funds can be attracted to enter the market in a timely manner; otherwise, the stock price may easily experience a high-level pullback in the short term. It is recommended that investors closely monitor the volume coordination and be cautious about the technical risk of a price reversal after a volume-less surge