HU-SBPH@EC2607A(19979.HK)

Morning Trend | SINO BIOPHARM retraces to a low point, will a rebound window open?

SINO BIOPHARM (1177.HK) has recently experienced a continuous low-level fluctuation in its stock price, with daily candles showing slight alternation between bullish and bearish trends, and an overall downward shift in focus. In the past few trading days, the stock price has retraced to the vicinity of previous low ranges, with trading volume continuously shrinking, indicating a strong wait-and-see sentiment among new funds in the market. From a technical perspective, the MACD indicator remains in a death cross, with significant green bars, and there is considerable divergence between bulls and bears in the short term. On the fundamental side, the company focuses on its pharmaceutical core business, possessing strong R&D capabilities and product resources. However, it is affected by industry medical insurance cost control, centralized procurement pressures, and a slowdown in quarter-on-quarter performance growth, leading to weakened market confidence. The overall valuation of the Hong Kong pharmaceutical sector is under pressure, with limited inflow momentum from northbound and foreign capital, and a noticeable decline in trading enthusiasm. Meanwhile, the global interest rate hike cycle and the continued weakness of the Hong Kong dollar are also macroeconomic negatives that further suppress risk appetite for funds. From a technical standpoint, current support is located in the HKD 3.5-3.8 range, which has historically seen rebounds after multiple touches. However, the sustainability of recent rebounds has been average. If there is a short-term increase in volume that pushes the price above HKD 4, it may open a window for a rebound and repair the weak pattern. Conversely, if the volume decreases and breaks below support, there may be a risk of inertia downward. Investors are advised to closely monitor the distribution of main funds and the short-term sector atmosphere, and to avoid blindly entering large positions until technical signals are clear. If a rebound stabilizes alongside unusual movements in incremental funds, light positions may be considered for short-term opportunities, with an overall focus on stability and risk control as a priority