Morning Trend | CPIC faces resistance in its rise, can the high-pressure situation be broken?
China Pacific Insurance (2601.HK) has recently seen a resurgence in bullish sentiment driven by the strong performance of the insurance sector, with its stock price frequently rising to test high-pressure zones. However, it is worth noting that the trading volume has not been supportive in recent trading days, and the daily MACD has just formed a golden cross, indicating a noticeable acceleration in the rhythm of capital conversion between bulls and bears, leading to intense short-term defensive and offensive shifts. The 5-day moving average has quickly crossed above the 10-day and 20-day moving averages, showing the initial signs of a bullish technical pattern, but high-pressure resistance still exists. From a fundamental perspective, China Pacific Insurance benefits from economic recovery and growing insurance demand, coupled with improved expectations for mid-year performance and continuous inflow of long-term capital, providing room for valuation recovery. However, the market still holds differing views on the industry's growth rate and the pace of new premium releases, with some short-term funds inclined to cash out at high levels. In terms of technical analysis, the primary focus is currently on the platform resistance around HKD 31. As long as it stabilizes above this line and breaks through with increased volume, it is expected to accelerate towards the HKD 33-34 range. However, if the trading volume cannot sustain its increase, a short-term pullback to around HKD 30 for a second consolidation cannot be ruled out. In terms of operational strategy, it is recommended to actively position during pullbacks for right-side trading while dynamically protecting profits and losses to guard against sudden capital changes that may trigger a retreat. Overall, China Pacific Insurance is at a critical juncture of high-level offense and defense, with strong bullish momentum but still facing pressure. Future focus should be on mid-year performance guidance and sector rotation patterns, adjusting holding strategies in a timely manner based on volume and price to achieve a balance between offense and defense
China Pacific Insurance (2601.HK) has recently seen a warming of bullish sentiment driven by the strong performance in the insurance sector, with its stock price frequently rising to test high-pressure zones. However, it is worth noting that the trading volume has not been supportive in recent sessions, and the daily MACD has just formed a golden cross, indicating a noticeable acceleration in the conversion rhythm of long and short funds, leading to intense short-term defensive and offensive shifts. The 5-day moving average has quickly crossed above the 10-day and 20-day moving averages, showing an initial bullish technical pattern, but high-level pressure still exists.
From a fundamental perspective, China Pacific Insurance benefits from economic recovery and growing insurance demand, coupled with improved expectations for mid-year performance and continuous inflow of long-term funds, providing room for valuation recovery. However, the market still holds differing views on the industry's growth rate and the pace of new premium releases, with some short-term funds inclined to cash out at high levels.
In terms of technical analysis, the primary focus is currently on the platform pressure around HKD 31. As long as it stabilizes above this line and breaks through with increased volume, it is expected to accelerate towards the HKD 33-34 range. However, if the trading volume cannot continue to expand, a short-term pullback to around HKD 30 for a second consolidation cannot be ruled out. In terms of operations, it is recommended to actively position during pullbacks for right-side trading while dynamically protecting profits and losses to guard against sudden fund changes that may trigger a retreat.
Overall, China Pacific Insurance is at a critical juncture of high-level offense and defense, with strong bullish momentum but still facing pressure. Future focus should be on mid-year performance guidance and sector rotation patterns, adjusting holding strategies in a timely manner based on volume and price to achieve a balance of offense and defense
