Morning Trend | YUE YUEN IND surged with increased volume on October 20, is there still room for a rebound?

YUE YUEN IND's performance on October 20 can be regarded as a barometer for the textile and apparel sector. The stock opened high and saw continuous inflow of main funds throughout the day, driving the stock price to break through key short-term resistance levels consecutively. On the news front, several leading companies in the global sneaker market disclosed their third-quarter reports this week, all indicating a strong recovery in core consumer market demand. As we enter the peak season for domestic consumption, coupled with the implementation of multiple favorable policies, the overall market risk appetite has increased, providing a solid rebound foundation for YUE YUEN IND.

The sector's interconnected market performance is also significant. As a leading textile and apparel company in the Hong Kong stock market, YUE YUEN IND's sustained strength has led to a synchronous rise among peers, showing a clear sector solidarity characteristic. Industry information indicates that the group successfully obtained a cross-border e-commerce platform cooperation agreement this week, which means the company will accelerate its pace in digital transformation and overseas sales channel expansion, injecting new growth momentum into its performance.

From a technical analysis perspective, YUE YUEN IND's strong K-line breakout is based on increased trading volume, effectively repairing previous technical indicators, and the bullish trend is gradually becoming clear. MACD and various short-term moving averages are all turning upwards, and the chip structure is becoming concentrated with the inflow of funds. However, with the rapid short-term rise, intraday fluctuations have noticeably intensified, and some short-term profit-taking funds have begun to loosen. This indicates that although the bulls still dominate, sentiment has shown signs of divergence, and short-term floating chips may gradually emerge. Subsequent risk points include rapid changes in industry news and fund diversion; if the trading volume cannot be sustained or encounters sudden negative news, the stock price may face technical pullbacks or wave correction pressure.

In practical operations, it is recommended to pay attention to sector sentiment heat, significant movements of main funds during intraday trading, and the gains and losses of technical support levels. If industry demand and favorable news continue to follow up, there is still potential for rebound space to expand, but after consecutive rapid rises, short-term volatility and retracement risks will also increase. Investors should maintain a reasonable control of positions and stop-loss ranges while keeping an eye on the market, avoiding chasing high prices and missing opportunities.

In summary, YUE YUEN IND's volume surge strengthens the short-term bullish structure, and there is still rebound space available. However, the increasing market divergence and the uncertainties brought about by industry changes are also amplifying. It is advisable to adopt a flexible response strategy, strengthen trend tracking, and manage positions to avoid risks, seizing elastic opportunities while guarding against rapid fund outflows after market fluctuations