Morning Trend | Shenzhou International sees capital inflow, is a breakthrough opportunity coming after high-level fluctuations?
Shenzhou International (2313.HK) has recently seen an increase in trading volume, with a clear trend of capital inflow and improvements in several technical indicators at the daily level. The 5-day and 10-day moving averages have formed a golden cross, establishing a preliminary bullish pattern in the short term. The market structure indicates that Shenzhou International shows a willingness to break upward after a phase of high-level consolidation, with the stock price consistently closing above the short-term moving averages, attracting attention from technical investors. Shenzhou International previously experienced continuous consolidation, during which the proportion of foreign trading and passive index fund allocation fluctuated significantly. Benefiting from the recovery in downstream sports and outdoor activities, as well as improvements in overseas brand orders, the market has reassessed Shenzhou's medium to long-term fundamentals, with core funds gradually flowing in during the expected recovery window. Additionally, the recent optimization of the global textile and apparel supply chain, along with controllable raw material costs, provides a bottom-line support for its profit elasticity. It is important to note that there is a clear alternation between controlling funds and speculative funds at this stage, leading to market divergence regarding the "high-level second breakthrough." Some long-term funds have chosen to reduce their holdings and secure profits, while some incremental speculative funds are attempting to push prices higher. From a technical perspective, the 5-day moving average serves as the first support level. If trading volume continues to increase and maintains strong support, it is expected to challenge the previous platform high and further test the pressure above HKD 135. However, if trading volume shrinks during the session or the sector weakens, a temporary pullback to around HKD 130 to seek support cannot be ruled out
Shenzhou International (2313.HK) has recently seen a gradual increase in trading volume, with a clear trend of capital inflow, and several technical indicators at the daily level showing improvement signals. Among them, the 5-day and 10-day moving averages have formed a golden cross, establishing a preliminary bullish pattern in the short term. The market structure indicates that Shenzhou International has shown a willingness to break upward after a phase of high-level consolidation, with the stock price consistently closing above the short-term moving averages, attracting attention from technical investors.
Shenzhou International previously underwent continuous consolidation, during which the proportion of foreign capital trading and passive index fund allocation fluctuated significantly. Benefiting from the recovery in downstream sports and outdoor activities, as well as improvements in overseas brand orders, the market has re-evaluated Shenzhou's medium to long-term fundamentals, with core funds gradually flowing in during the expected repair window. Coupled with the recent optimization of the global textile and apparel supply chain, controllable costs at the raw material end provide a bottom-line support for its profit elasticity.
It is important to note that at the current stage, there is a clear alternation between controlling funds and speculative funds, leading to market divergence regarding the "high-level secondary breakthrough." Some long-term funds have chosen to reduce their holdings and take profits, while some incremental speculative funds are attempting to push prices higher. From a technical perspective, the 5-day moving average serves as the first support level. If trading volume continues to increase and maintains a strong hold, it is expected to challenge the previous platform high and further test the resistance above HKD 135. If trading volume shrinks during the session or the sector weakens, there is a possibility that the stock price may briefly pull back to seek support around HKD 130.
Considering the external macro environment and industry catalysts, Shenzhou International currently exhibits characteristics of capital inflow and bullish dominance. However, close monitoring of major player behavior and details of capital distribution is necessary when facing resistance. Short-term trading suggestions include following the trend on the right side under sustained strength in the sector and accompanying volume, but avoiding chasing highs and easily increasing positions amid emotional fluctuations, while emphasizing stop-loss management and position control. If negative industry news or global market risks intensify, Shenzhou International may also experience a pullback and consolidation, requiring continuous dynamic tracking of directional signals.
Overall, the phase of capital inflow and strengthening technical pattern in Shenzhou International provides a window for short-term investors to engage in speculative breakthroughs. However, with rapid market changes and significant sector differentiation, it is essential to be cautious of high-level consolidation reversal risks. Conservative investors may wait for sufficient momentum before following up with their positions
