CTCRPOW@EC2602A(20374.HK)

Morning Trend | CHINA RES POWER Approaches Key Support, Will the Weak Market Pattern Change?

China Resources Power (836.HK) has seen its stock price continue to decline recently, with daily candles closing in the red for several consecutive days and trading volume shrinking. The current stock price is approaching previous lows and important support areas, with market buying interest showing a wait-and-see sentiment. The MACD indicator maintains a death cross with green bars, and the bullish arrangement of moving averages is gradually breaking down, with short-term bearish sentiment dominating the market. From a fundamental perspective, although China Resources Power has defensive attributes and stable earnings from its main business, supportive policies regarding electricity prices and consumption are expected to partially offset cost pressures. However, affected by the macroeconomic slowdown and lackluster market rotation, overall capital attention in the utility sector has decreased, with major funds flowing into active sectors, leading to weak stock price performance. From a technical standpoint, the current stock price is close to the important threshold of HKD 30, where there has historically been strong buying interest. If there is a significant volume stabilization during today's trading, it may create an opportunity for a rebound from oversold conditions. However, if the volume continues to shrink and breaks down, caution is needed to prevent chaotic capital outflows that could accelerate the decline, further testing lower support levels. In the short term, investors should focus on intraday trading volume and large order fund movements. If there is a technical divergence at the bottom and significant buying activity, a light position could be taken to participate in the rebound. If the weak market pattern continues and sector rotation has not shown significant improvement, caution should be exercised to avoid downside risks. Overall, China Resources Power is currently at a critical turning point, and attention should be paid to changes in trading volume and policy news