Pre-market trend | YIDU TECH (2158.HK) dropped nearly 7% on May 12 with increased volume, is the signal facing headwinds?

Yesterday, YIDU TECH's stock price fell sharply by 6.95%, closing at HKD 5.89, with weak performance throughout the day and clear dominance by short sellers. Although the MACD daily chart previously formed a bullish signal, the significant drop in stock price puts this signal under severe test, and this divergence between technical indicators and price movements usually indicates low market confidence in the signal. The trading volume was approximately HKD 60.05 million, and the increase in volume during the decline suggests that a considerable amount of capital chose to exit at this position. The TTM price-to-earnings ratio is -69.67 times, and the company is still in a loss-making phase, with limited fundamental support. On the news front, YIDU TECH focuses on medical big data and AI technology services. Although the AI medical concept was once favored in the Hong Kong stock market, there remains significant disagreement regarding the speed of its commercialization and profitability timeline. Recently, the technology sector in the Hong Kong stock market has been under pressure, with leading companies like Tencent and Meituan experiencing varying degrees of pullback, and the outflow of funds from the sector has a more pronounced negative impact on small and mid-cap AI concept stocks. Additionally, the central bank's monetary policy report suggests a neutral liquidity environment, adding extra pressure on high-valuation, high-uncertainty loss-making tech stocks. From a technical perspective, yesterday's large bearish candle has engulfed most of the previous days' rebound gains, and the stock price has fallen below short-term moving average support, significantly damaging the technical pattern. The HKD 5.80 level is a key support in the near term; if it continues to break down today, it may test HKD 5.50 or even lower. The unfavorable volume-price relationship makes short-term recovery difficult. The short-term trend is biased towards bearishness, and the validity of bullish signals is in doubt, requiring observation of whether it can stabilize around HKD 5.80