Morning Trend | Shanghai Petrochemical Co., Ltd. opened high and closed low, a critical moment for the oil and gas game?

Shanghai Petrochemical Company (338.HK) experienced a sharp rise yesterday, but today in the morning session, it opened high and then declined, with a significant widening of market divergence. At the opening, funds quickly gathered, and large orders from the main players pushed the price up, but they soon faced heavy selling pressure, leading to intense back-and-forth trading between bulls and bears. Recently, the oil and gas sector has been experiencing continuous fluctuations, significantly influenced by international oil price volatility. Shanghai Petrochemical's high opening and rise initially attracted follow-up buying, but within 10 minutes, it was smashed back by short-selling funds, with large orders frequently flowing out during the intraday trading, intensifying the market debate over the "true or false rise." Technically, it just regained the 8-day moving average yesterday and is once again approaching the HKD 7.2 support today, with the community filled with doubts like "Isn't this a trap to lure in buyers?" However, there are also optimists who believe that the high opening and subsequent decline are part of a washout, aimed at freeing up more chips above to make the rebound more solid. Whether it can stabilize above the 8-day moving average and resume a volume-driven upward trend will be a key focus for short-term traders. If the intraday funds continue to decline, the market may further test the core support at HKD 6.9-7.0. In terms of operations, short-term players must pay extra attention to changes in volume and the behavior of main players. A true breakthrough or confirmation of a rebound will require effective volume expansion and continuous large buy orders entering the market. When there is no chip advantage or the market is hesitant, conservative players should avoid blindly chasing the rise. Overall, Shanghai Petrochemical is at a critical moment for short-term speculation, with a showdown between bulls and bears imminent. Whether this is a temporary lure for buyers or a genuine reversal will be revealed in today's intraday trading. The trading atmosphere is tense, with opportunities and traps coexisting

Recently, the oil and gas sector has been experiencing continuous fluctuations, significantly influenced by international oil price volatility. The high opening and rise of Shanghai Petrochemical initially attracted follow-up buying, but within 10 minutes, it was smashed back down by short-sellers. Large orders frequently flowed out during the intraday trading, intensifying the debate over whether the market's rise was genuine or false. Technically, it just regained the 8-day moving average yesterday, and today it is once again approaching the support level of HKD 7.2, with the community filled with doubts like "Isn't this a trap to lure in buyers?"

However, there are also optimists who believe that the high opening and subsequent decline are part of a washout, aimed at freeing up more chips above to make the rebound more solid. Whether it can stabilize above the 8-day moving average and re-accelerate upward is a key indicator to watch in the short term. If the intraday funds continue to decline, the market may further test the core support level of HKD 6.9-7.0.

In terms of operations, short-term players must pay extra attention to changes in trading volume and the behavior of the main players. A true breakout or confirmation of a rebound requires effective volume expansion and continuous large buy orders entering the market. When there is no chip advantage or the market is hesitant, conservative players should avoid blindly chasing the rise.

Overall, Shanghai Petrochemical Company is at a critical moment for short-term speculation, with a showdown between bulls and bears imminent. Whether this is a temporary lure for buyers or a genuine reversal will be revealed in today's intraday trading. The trading atmosphere is tense, with opportunities and traps coexisting