
Morning Trend | NANSHAN ALUMINIUM approaches resistance level, is it a true breakout or a trap?

NANSHAN ALUMINIUM INTERNATIONAL (2610.HK) has recently been gradually rising along the short-term moving averages, with prices approaching the upper resistance zone. Technically, the previous dense trading area forms a significant resistance barrier. To achieve a genuine breakout, three conditions must be met: first, the trading volume must significantly increase compared to the average volume of the past 5-10 days; second, the closing price must effectively stay above the resistance level with a healthy increase in turnover; third, a follow-up bullish candlestick must appear the next day or in the following days to consolidate the breakout results. If there is only an intraday surge but the closing price falls back below the resistance level, or if long upper shadows repeatedly appear without corresponding volume, it may indicate a "bull trap," and short-term funds might choose to cash out at high levels, increasing the likelihood of the stock price returning to a range-bound fluctuation. From the indicators, the MACD remains oscillating upward near the zero axis, with the rhythm of the red bars consistent with the price rhythm, indicating that the trend is attempting to shift from weak to strong, but more capital drive is needed for confirmation. If the RSI continues to rise and approaches the 70 level, caution should be exercised regarding the rapid pullback risk brought by overheating sentiment. In terms of operations, right-side traders seeking certainty can wait for the completion of the three-stage structure of "breakout - pullback - re-rise" before following; left-side investors can observe the intraday support strength near the support zone formed by the 5-day and 10-day moving averages. If the pullback occurs with reduced volume and funds flow back in at the end of the day, it would create conditions for a tentative low buy, but strict stop-loss levels should be set below the recent intraday low or below the 10-day moving average
Due to copyright restrictions, please log in to view.
Thank you for supporting legitimate content.

