Morning Trend | GENSCRIPT BIO's oversold rebound space is limited, can the pharmaceutical theme rise again?

GENSCRIPT BIO (1548.HK) has recently seen a resurgence in its downward trend, with the daily MACD showing a death cross and a significant expansion of green bars, indicating a clear bearish trend in technical terms. The market shows a continuous decline in volume, with noticeable capital outflow and a strong wait-and-see sentiment among major players. Although there were signs of an oversold rebound yesterday, the trading volume failed to effectively increase, raising doubts about the sustainability of the rebound. The pharmaceutical sector has performed poorly overall recently, with investors' risk appetite declining, making it difficult for short-term thematic market momentum to emerge. On the fundamental side, GENSCRIPT BIO is at the forefront of innovative drug research and development, possessing medium to long-term growth potential. However, it is under pressure from industry regulations and price reductions due to centralized procurement, which has impacted profit growth expectations. Market funds tend to favor short-term risk aversion, and the sector as a whole lacks a systematic basis for upward movement. In the short term, without new clinical progress or significant cooperation news, it is challenging to reverse the weak market trend. Technically, the current stock price is near historical support levels, and close attention should be paid to the loss or gain of this support, as a breach could trigger accelerated declines. In terms of operational advice, short-term traders should closely monitor the flow of funds and trading activity in the market, and it is not advisable to blindly bottom-fish without accompanying volume. Conservative investors may wait for signs of stabilization in the sector and improvement in the company's fundamentals before entering the market. Pharmaceutical stocks may continue to be in a bottoming phase in the short term, with a focus on defensive holding and effective risk management. Future attention should be paid to the marginal changes in industry policies and their impact on the sector