Morning Trend | WuXi AppTec shrinks in volume and tests the bottom, will news drive a short-term reversal?

Yesterday afternoon, WuXi AppTec's A/H shares moved in tandem, opening lower and fluctuating, with the stock testing a phase low towards the end of the trading session, as funds remained cautiously defensive. The Hong Kong pharmaceutical sector continues to be sluggish, with few highlights in recent news. The market is more focused on the progress of domestic generic drug policies and the sales situation of COVID-19 medications, but WuXi AppTec has no new announcements to stimulate interest. Recently, the company reported progress in cooperation with leading overseas pharmaceutical companies, which, although it failed to ignite bullish sentiment, has slightly improved the liquidity of the entire pharmaceutical service sector. Technically, the MACD remains weak, with downward pressure on major moving averages not easing, while the KDJ and RSI have rebounded to extremely weak ranges, indicating a hidden demand for a rebound but lacking ignition signals. Investors should be wary of structural pullbacks that may entice buying; if trading volume does not increase, the atmosphere of caution will remain strong. In the short term, attention should still be on marginal changes in policies and cooperation events. Only if there are unusual intraday trading movements or positive expectations can volatility be expected, and the risk exposure remains a concern. Overall, WuXi AppTec may need to rely on core industry positives to truly reverse its weakness. Currently, positions should be strictly controlled, and close attention should be paid to changes in the sector's volume-price structure and marginal policy catalysts, waiting for fundamental signals to gradually clarify before making right-side responses