Morning Trend | ZTE experiences a volume decline, is there a change in the market with unusual capital movements?

ZTE Corporation (763.HK) has recently continued its adjustment trend in stock price, with weak daily-level rebounds and a continuous decrease in trading volume, resulting in a slight arrangement of bearish candlesticks. The MACD indicator remains in a death cross, indicating a clear short-term bearish structure. The shrinking trading volume suggests overall market sentiment is low, with many funds choosing to wait and observe. On the fundamental side, ZTE's communication equipment business has shown reasonable resilience since last year, but the slowdown in 5G investment pace and cost-cutting pressures in the industry have put pressure on profitability. Additionally, fluctuations in overseas market orders and uncertainties in the trade environment have led the market to maintain a cautious attitude towards the company's medium to long-term growth. Affected by external sentiment, the overall defensiveness of the sector has weakened, and there has been insufficient rotation among technology mainlines. From a technical perspective, after the candlestick box broke downwards, it has been continuously testing support and is now close to the HKD 18-19 range, where there has historically been some accumulation of shares and willingness to support. If there is a volume increase that leads to a reversal or unusual fund movements during intraday trading, it is expected to test the HKD 20 psychological level and short-term moving average pressure. If the volume continues to decrease, caution is needed as it may fall to the HKD 17 or lower support. Operational suggestion: Investors should prioritize risk control and participate in short-term speculation based on intraday fund flows and unusual movements. Until there are signs of a reversal in the technical signals, ZTE is expected to remain in a weak oscillation trend, with subsequent policies and 5G industry events likely to bring marginal changes