Morning Trend | Brilliance China sees capital inflow, boosting sentiment in the automotive sector
Brilliance China (1114.HK) saw a significant inflow of funds during yesterday's trading session, forming a golden cross on the daily chart, with the MACD turning positive at the bottom, indicating clear signals of short-term bottom stabilization. The K-line closed positively with a moderate increase in trading volume, suggesting that a bullish dominance pattern has begun to establish itself. The automotive sector is benefiting from favorable policies, which has overall boosted short-term sentiment, with leading stocks in the sector strengthening and attracting follow-up funds, leading to a recovery in market risk appetite.
From a technical perspective, Brilliance China’s 5-day and 10-day moving averages have crossed positively, with support levels rising, further strengthening bullish sentiment. The intraday structure is good, with active fund movements and strong buying interest at lower levels, indicating robust support from the main players. If the trading volume continues to cooperate, a continuation of the rebound trend cannot be ruled out.
On the industry level, expectations for favorable policies in the new energy vehicle sector have increased, and leading stocks have significant valuation recovery potential, attracting value-oriented and trend-following funds. Technical and quantitative funds are beginning to pay attention to sector rotation opportunities, and the automotive sector may temporarily become a safe haven for funds.
Operational advice: In the short term, pay attention to the strength of support near the moving averages during pullbacks; if the trend of fund inflows continues, long positions can be appropriately followed. At the same time, monitor changes in overall market sentiment and the speed of policy implementation to seize swing trading opportunities. Risks to be wary of include volatility in leading industry stocks, macroeconomic negative disturbances, and sudden changes in sector rotation rhythm. Following the market on the right side still requires setting stop-losses and dynamic risk controls to guard against high-level pullback pressures. Moving forward, focus on dynamically tracking trading volume and policy variables to flexibly adjust trading styles
Technical Forecast·
