Morning Trend | Sea Continues to Decline and Test the Bottom, Is the Main Force's Counterattack Window Coming?
Sea (SE.US) has recently shown a significant weakness in its performance, with consecutive days of bearish candlesticks, and the stock price is approaching the 2022 low. Discussions within the community about "buying the dip or waiting longer" have noticeably increased. The tightening of new e-commerce regulations and the deteriorating competitive landscape in Southeast Asia have kept short-term sentiment low. However, from the market perspective, the trading activity in the $50 to $52 range has started to become more active, with some funds seemingly positioning themselves in advance, patiently waiting for a major move from institutional investors. On the news front, the company's third-quarter financial report fell short of expectations, and the subsidy battle in emerging market e-commerce continues to escalate, with short-term revenue pressures not yet fully released. However, after a series of sharp declines, speculative funds looking for a rebound are gearing up. Past experiences indicate that each time the stock price approaches a significant low, the community tends to go through a classic rhythm of "low volume stabilization—high volume rebound—breaking support—V-shaped stampede—buying the dip speculation." From a technical perspective, the daily K-line has entered an extremely oversold zone, with both MACD and RSI nearing the bottom, limiting short-term downward space. If the market continues to test the bottom with reduced volume this week but does not make new lows, it may attract some outside bullish funds to enter and test the waters, with a focus on the $52 support level. If there are any unexpected buyback announcements or rumors of group splits, it could easily trigger a sharp rebound in the short term. Community suggestion: The cost-effectiveness of shorting at the current price level is very low, and the risks of a mindless sell-off are gradually becoming apparent. Aggressive traders may pay attention to stabilization signals around $52, and if a high-volume rebound occurs, they can follow up to make a profit, with the first target zone looking at the $56-$58 resistance level
Sea (SE.US) has recently shown a significantly weak trend, with consecutive days of bearish candlesticks, and the stock price is approaching the 2022 low. Discussions in the community about whether to "buy the dip or wait a bit longer" have noticeably increased. The tightening of e-commerce regulations and the deteriorating competitive landscape in Southeast Asia have kept short-term sentiment low. However, from the market perspective, the trading volume in the $50 to $52 range has started to become active, with some funds seemingly positioning themselves in advance, patiently waiting for a major move from the leading funds.
On the news front, the company's third-quarter financial report fell short of expectations, and the subsidy battle in emerging market e-commerce continues to escalate, with short-term revenue pressures not yet fully released. However, after a continuous sharp decline, speculative funds looking for a rebound are gearing up. Past experiences indicate that each time the stock price approaches an important low, the community tends to go through a classic rhythm of "low volume stabilization—high volume rebound—breaking support—V-shaped stampede—buying the dip speculation."
From a technical perspective, the daily K-line has entered an extremely oversold zone, with both MACD and RSI close to the bottom, limiting short-term downside potential. If the trading volume continues to decrease while testing the bottom this week without making new lows, it may attract some outside bullish funds to try entering, with a focus on the $52 support level. If there are any unexpected buybacks or rumors of group splits, even minor news could easily trigger a sharp rebound in the short term.
Community suggestion: The cost-effectiveness of shorting at the current price level is very low, and the risks of mindlessly selling off are gradually becoming apparent. Aggressive traders may focus on signals of stabilization at $52, and if there is a high-volume rebound, they can follow up to make a profit, with the first target zone looking at the $56-$58 resistance area. More conservative traders may wait for further confirmation of capital inflow.
Operational advice: During the period of low-volume bottoming, it is suitable for T+0 or ultra-short quick in-and-out strategies to seize the "deep drop and then rebound" window. Pay attention to strict stop-loss controls, and exit promptly if it falls below $50. Recently, the main funds have favored short-term strategies, so be prepared to welcome a "decent rebound after a shocking drop."
In summary, Sea has dropped significantly and has reached a sensitive zone that could trigger a counterattack from the main funds, with a rebound window ready to open, just waiting for the market to make a statement
