Morning Trend | CRRC Bottoming Out, Is Capital Testing Old Lows Coming?

CRRC (1766.HK) experienced a low-level oscillation yesterday, repeatedly testing the key support level of HKD 5.90 during the day without success, with strong sentiment for bottoming out. Selling pressure was released at the opening, and heavily positioned funds have not shown a willingness to accumulate shares, with most participants focusing on short-term trial trades, lacking sustained buying momentum. Throughout the day, the sector lacked a leading theme to drive it, with weak internal correlation and cautious market sentiment. On the macro front, there are no significant policy boosts for infrastructure and urban rail investment, and while the central bank's reverse repos have increased, indirectly benefiting large infrastructure projects, CRRC lacks new orders or other incremental positive stimuli. Funds are favoring small-cap stocks with active event catalysts. The daily technical pattern remains bearish, with MACD momentum declining, and the important resistance level of HKD 6.19 has been tested multiple times without success, indicating a lack of strong short-term rebound momentum. This week, it is necessary to track industry news and changes in capital flow; if there are positive events or increased trading volume, opportunities for low-level speculation may emerge. Otherwise, if it breaks below the previous low, selling pressure may further intensify. The market is expected to focus on range oscillation and bottoming out in the short term