Morning Trend | TRAD CHI MED (570.HK) tested by bulls on October 16, market sentiment remains under pressure On October 16, China Traditional Chinese Medicine (570.HK) showed preliminary bullish signals during the trading session, with buying pressure slightly lifting. Recently, the stock price has moderately broken through the short-term resistance zone, and the pattern has improved, but actual trading volume remains sluggish, with main market players acting cautiously and showing no strong willingness to attack. Yesterday's market indicated that the atmosphere of capital waiting and observing is still evident, with low enthusiasm for short-term chasing gains, and overall risk exposure is dynamically changing, with bears and bulls continuously battling, lacking unilateral momentum in the trend. Currently, the pharmaceutical sector is strengthening overall under the influence of rising risk aversion, but funds are mostly used for flexible allocation, with rapid rotation among sectors and insufficient enthusiasm for chasing gains. Company-level news is quiet, lacking strong positive support, while macro policy factors such as anti-corruption in healthcare still present uncertainties. At this stage, the market for China Traditional Chinese Medicine is mainly dragged down by the external environment, with short-term liquidity fluctuating rapidly, and trading strategies tending towards short and quick. From a technical perspective, although the stock price has temporarily stabilized around the short-term moving averages and has seen a slight rebound, it frequently encounters resistance when approaching the mid-term pressure level, lacking sustained volume support and showing insufficient upward momentum. If buying pressure cannot be continuously stimulated in the short term, the trend may easily fall into a tug-of-war or even a pullback, and if key support is lost, the risk of pressure may significantly increase. From the characteristics of trading volume, the willingness of main funds to enter the market is weak, with sporadic large orders lacking follow-through, and both bulls and bears alternately dominate, showing clear structural market characteristics. The pharmaceutical sector is experiencing violent short-term fluctuations, and news from related sub-industries has a sensitive impact on individual stocks, with investment sentiment relying more on dynamic adjustments and the direction of fund inflows in the sector
Technical Forecast · 10/17/2025 09:00
