Morning Trend | CHINA OVERSEAS tests the lower range, is the rebound window or a new round of pressure?
China Overseas Development (688.HK) has recently continued to decline, testing the key support level of 13.23 yuan again last Friday, with the real estate sector overall in a persistent search for a bottom. The sluggish trading volume reflects insufficient confidence among market participants, and there is a strong atmosphere of market observation. Although there have been frequent signals of easing from the policy level, such as reserve requirement ratio cuts and financing relaxations from the central bank and the China Banking and Insurance Regulatory Commission, the pull of individual weak stocks is relatively weak. Last week, there were negative news such as bond defaults and weak sales within the sector, which significantly affected market sentiment and overall dragged down emotions. On the daily technical front, the MACD death cross pattern continues, and the moving average system is declining across the board, deepening the short-term bearish pattern. Buying pressure has not yet seen effective expansion, and some funds are still waiting for short-term policy catalysts. However, if the support is lost, panic selling cannot be ruled out, further opening up the downside space. Investors should closely monitor intraday capital flows and new marginal policy trends to prevent negative sentiment in the sector from triggering larger fluctuations. From a trading strategy perspective, the focus remains on risk control and short-term capital management. It is necessary to observe intraday volume performance, macro policy direction, and respond when there are anomalies in sector interconnectivity
China Overseas Development (688.HK) has recently continued to decline, testing the key support level of 13.23 yuan again last Friday, with the real estate sector overall in a persistent search for a bottom. The sluggish trading volume reflects insufficient confidence among market participants, and there is a strong atmosphere of market wait-and-see. Although there have been frequent signals of easing from the policy level, such as reserve requirement ratio cuts and financing relaxations from the central bank and the China Banking and Insurance Regulatory Commission, the pull of individual weak stocks is relatively weak. Last week, there were negative news such as bond defaults and weak sales within the sector, which significantly impacted market sentiment and overall dragged down emotions.
On the daily technical front, the MACD death cross pattern continues, and the moving average system is declining across the board, deepening the short-term bearish pattern. Buying pressure has yet to show effective expansion, and some funds are still waiting for short-term policy catalysts. However, if the support is breached, panic selling may occur, further opening up the downside space.
Investors should closely monitor intraday capital flows and new marginal policy trends to prevent negative sentiment in the sector from triggering larger fluctuations. From a trading strategy perspective, the focus should still be on risk control and short-term capital management. It is necessary to observe intraday volume performance, macro policy direction, and respond when there are anomalies in sector interconnectivity
