Morning Trend | Sinopec drives the petrochemical sector to warm up, is a breakthrough market possibly brewing?

After the market close on December 19, Sinopec (386.HK) accelerated its stock price movement, with a noticeable increase in bullish sentiment, contrasting with the previous wait-and-see attitude. Although the overall funding situation remains stable, there are signs of localized activity, with main funds slightly attempting to replenish and short-term buying gradually entering. Recently, commodity prices have rebounded overall, and the rise in oil prices and futures markets has driven sentiment back into the petrochemical sector, further linking A-shares and Hong Kong stocks, with Sinopec becoming a barometer for fund flows. Observing the market, the stock price has consistently remained above the 5-day and 10-day moving averages, with the technical range gradually narrowing. Most traders are focused on the key support level of 4.01 yuan, closely tracking potential volume fluctuations. "If volume does not increase, it is difficult for the market to break through" has become a consensus in the market. Although there was no significant increase yesterday, intraday trading showed signs of gradual probing by the main funds, and whether subsequent momentum continues to increase remains to be seen. The current technical outlook is slightly bullish, with the market focusing on macro oil price trends and global risk events, as these factors could impact sentiment at any time. Short-term investors are closely monitoring sector performance, maintaining high vigilance regarding the relationship between volume and price and potential pullback pressures. Additionally, the overall performance of the petrochemical sector is closely linked to international oil prices. The recent slight increase in oil prices has strengthened the bullish sentiment, but volatility at high levels is also increasing, leading some institutions to cautiously increase their positions. Trading volume is recovering moderately, and if it can continue to expand, it will help confirm a new upward cycle for the sector