Morning Trend | AUX ELECTRIC rebounds from a low level, short-term funds test the repair window

AUX ELECTRIC (2580.HK) showed a slight strengthening during yesterday's trading session, closing in the afternoon with a small bullish candle, and for the first time showing some signs of support at a low level. The announcements continue to revolve around fluctuations in raw material prices, with no significant information released regarding cross-industry cooperation or mergers and acquisitions, leading to an overall weak sentiment in the sector and limited attractiveness compared to hot sectors. The market's long and short forces are in a balanced tug-of-war; although there are no obvious large orders from main players pushing the price up, the intraday volume at low levels has slightly rebounded, indicating that some speculative funds are beginning to tentatively build positions. Technically, the hourly moving averages and MACD are turning upwards, and short-term rebound expectations have slightly increased. If market enthusiasm rebounds and main players increase their positions during the performance gap, it is likely to push prices to previous resistance levels. However, caution is needed as any resistance encountered or further fluctuations in raw material prices could easily trigger a retreat from bulls, leading to a rapid reversal of gains. The trading strategy should focus on tracking changes in volume expansion and capital activity, avoiding heavy positions for elasticity plays, and is suitable for light positions with quick in-and-out operations