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Early Morning Trend | Power Assets Holdings consolidates with reduced volume, can the defensive sector hold its ground?

Power Assets Holdings (6.HK) consolidated at a high level yesterday, with trading volume continuing to shrink and market sentiment being relatively low. As a leading utility company, its main structure remains robust, but some high-level funds have chosen to exit, indicating that short-term defensive preferences are still present, but there is insufficient momentum for a sustained upward push. There is still interest from external funds in the utility sector, but industry differentiation has intensified, and some funds are particularly wary of the risks associated with high-level adjustments. The inflow of large orders has significantly decreased throughout the day, with trading volume hitting a new low. There are currently no sudden negative news in the industry, and the capital flow is leaning towards defense. Technically, CNY 50.35 is an important support level; if it is breached, downward pressure will further increase. Market sentiment has shifted, sector rotation has slowed, and the proportion of on-site funds waiting and observing continues to rise. The defensive characteristics under continuous shrinking volume make the market susceptible to fluctuations from large orders. It is recommended to pay attention to sudden capital movements in the sector and subsequent policy changes to enhance awareness of adjustment risks

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