Morning Trend | COMEC tests support level, is a thematic catalyst for the defense sector approaching?
COMEC hit a new low during trading yesterday, and the defense sector generally retraced previous gains. The geopolitical situation has temporarily cooled, leading to a slowdown in capital rotation within the sector, weakening buying momentum on the market, with most right-side trading funds opting to wait and see. From a technical perspective, the daily K-line continues to decline, with significant pressure above HKD 16.40, and short-term support is focused on the HKD 15.50 area. Currently, industry news is relatively bland, but market rumors suggest that military enterprises are expected to obtain new procurement contracts, providing local funds with speculative opportunities. Overall, technical signals have not yet shown a clear stop to the decline, and sector momentum is limited, with a prevailing wait-and-see sentiment. Only when unexpected orders or geopolitical situations escalate again might there be a catalyst for sector movement to break the weakness. On the operational level, it is essential to pay special attention to intraday fluctuations and news impacts, as the defense sector has not yet stabilized in the short term, with a lack of rebound momentum, and right-side participation should be cautious. It is recommended to monitor the distribution of main funds, marginal policy changes, and the direction of the broader market to reduce volatility risks caused by sudden changes in sector themes
COMEC hit a new low during trading yesterday, and the defense sector generally retraced previous gains. The geopolitical situation has temporarily cooled, leading to a slowdown in capital rotation within the sector, weakening buying momentum on the market, with most right-side trading funds opting to wait and see. From a technical perspective, the daily K-line continues to decline, with significant pressure above HKD 16.40, and short-term support is focused on the HKD 15.50 area.
Currently, industry news is relatively bland, but market rumors suggest that military enterprises are expected to obtain new procurement contracts, providing local funds with speculative opportunities. Overall, technical signals have not yet shown a clear stop to the decline, and the sector's momentum is limited, with a prevailing wait-and-see sentiment. Only when unexpected orders or geopolitical situations escalate again might there be a catalyst for sector movement to break the weakness.
On the operational level, it is essential to pay special attention to intraday fluctuations and news impacts. The defense sector has not yet stabilized in the short term, with a lack of rebound momentum, so participation on the right side should be cautious. It is recommended to monitor the distribution of main funds, marginal policy changes, and the direction of the broader market to reduce volatility risks caused by sudden changes in sector themes
