Morning Trend | SHENZHOU INTL pulls back to support, is a downward trend coming in a sluggish sector?
Shenzhou International (2313.HK) has recently shown a continuous downward trend at the daily level. Yesterday, the K-line closed below the 5-day and 10-day moving averages, and the MACD indicator further formed a death cross and amplified the green bars, reflecting a sustained outflow of market funds in the short term, with a dominant bearish atmosphere. The textile and apparel sector, where Shenzhou International is located, is overall performing poorly, and the adjustment of industry leaders has significantly impacted the sector's capital activity, resulting in weak market support. The current stock price has repeatedly tested the support near the six-month and annual moving averages but has failed to stabilize effectively, indicating that the weak pattern remains. If today's intraday trading breaks below the previous low and important support, the market may face a new round of downward pressure.
From a fundamental perspective, although Shenzhou International has certain competitive advantages in the industry, the slow progress of external demand recovery and the incomplete release of cost pressures have led to insufficient market confidence in its short-term performance recovery. In addition, the sector rotation effect has weakened, and as a heavyweight stock, Shenzhou International has faced significant capital outflow pressure. Technically, attention should be paid to the six-month moving average and previous low support during the day. If a large amount of capital follows suit in selling, it will further open up downward space for the trend.
In terms of strategy, short-term investors are advised to focus on defensive measures, closely monitor changes in intraday trading volume and the stabilization of support zones, and avoid rash bottom-fishing without significant rebound signals. Medium to long-term investors may consider the marginal improvement of the company's fundamentals and signals of industry prosperity turning points before making any layout decisions. Overall, Shenzhou International is unlikely to have an independent market performance in a weak market, and right-side trading should be approached with caution and patience
Technical Forecast·
