Morning Trend | CHALCO surges on increased volume, frequent high-level warning signals in the sector?

China Aluminum (2600.HK) saw its stock price rise again in the afternoon yesterday, driven by the rally in overseas aluminum futures, and at one point approached previous highs, with a noticeable increase in buying sentiment. This week, the company announced that a significant alumina project is about to be put into production, and stimulated by the rise in international metal prices, the non-ferrous metal sector has attracted capital, becoming a hotspot for investment. Short-term capital is active in the market, with a significant increase in turnover rate, and the stock price remains in a high-level fluctuation zone. From a technical perspective, multiple short-term momentum indicators are strengthening simultaneously, with solid support from the 20-day and 30-day moving averages on the daily chart, indicating a significant bullish atmosphere. Trading volume continues to expand, reflecting a strong willingness of main funds to control the market. However, caution is needed as overbought indicators (such as RSI and KDJ) are at high levels, increasing risk awareness, and some main funds have chosen to cash out at high levels, gradually increasing the risk of high-level pullbacks during sector rotations. From an industry perspective, the themes of carbon neutrality and domestic substitution, along with supply-side reforms, continue to stimulate industry leaders. Due to fluctuations in overseas metal prices, domestic and international aluminum prices frequently experience sharp rises and falls. China Aluminum has shown multiple abnormal movements, and the trends and sentiment changes of main funds have become the focus for the future market. In the high-level zone, capital inflows and outflows are interspersed, and short-term vigilance is required regarding the volatility caused by frequent capital movements. A volume contraction pullback or external market sentiment fluctuations may lead to sharp price adjustments. In terms of operations, it is recommended to closely track intraday trading and relevant sector news to quickly adjust positions and prevent sudden risks