Morning Trend | Huaneng Power adjusts with reduced volume, can the weak pattern be broken?
Huaneng Power International (902.HK) showed weak performance on January 30, with trading volume significantly reduced compared to last week. Since the end of last year, the power sector has seen a decline in trading sentiment due to a lack of clear direction and policy drivers. Current policy discussions on energy consumption and industry regulation have become more moderate, and with the earnings season for leading stocks yet to arrive, institutional positions are in a wait-and-see mode. Yesterday, the stock price fluctuated around the support level of 5.7 yuan, with low buyer interest and a noticeable narrowing of short-term volatility.
From a news perspective, fluctuations in international energy prices and new forecasts from the U.S. Energy Information Administration have caused external disturbances, indirectly affecting the performance of Hong Kong A-share power stocks. The market's expectations for the subsequent profit recovery of power companies are not optimistic, with liquidity for smaller stocks tightening further and limited space for long and short operations.
From a technical perspective, the MACD continues to decline, and the daily K-line is under pressure, with any intraday rebounds facing bearish pressure. Trading activity remains sluggish, reinforcing the characteristics of "old hotspots" in the sector, and signs of major position adjustments are frequent. Attention should be paid to the 5.7 yuan support level; if there is a sudden surge in volume or positive news, a rebound from oversold conditions may occur. However, the overall market rotation remains unclear, and cautious investors should monitor volume, price, and news margins to guard against further weakness and new lows. The investment strategy suggests a focus on dynamic observation, emphasizing technical patterns and unexpected variables
Technical Forecast·
