Morning Trend | DAMAI ENT's trading volume decreases, is the pressure line a false signal or a real opportunity?
DAMAI ENT (1060.HK) has been under pressure in recent trading days, operating below the resistance zone, with a further reduction in trading volume observed in the morning session. The market is highly focused on the capital game around the resistance line. Currently, the technical indicators show that the daily MACD remains in a death cross state, with a strong overall bearish atmosphere. Recently, the stock price has been weakly fluctuating around HKD 6.20-6.40. The capital on the market is hesitant before the resistance level and has not yet formed a sustained and effective upward momentum. Throughout this phase, after experiencing a continuous decline, the short-term divergence has widened, and the oversold condition has slightly eased. Yesterday, there were signs of partial capital inflow in the intraday trading, but no sector linkage has been formed yet. The shrinking volume indicates that the main force has not yet used its full strength to push up, and most investors remain cautiously on the sidelines. In the short term, if today's trading volume does not show significant expansion, the probability of the stock price continuing to fluctuate around HKD 6.30 is high. Only if the main capital gathers and breaks through HKD 6.50 can a short-term reversal signal be confirmed; otherwise, the unusual movements before the resistance zone are more likely to be a trap for inducing buying rather than a real opportunity. Considering the overall market environment, the rotation speed of the growth sector has accelerated, and short-term risk appetite is contracting. It is recommended that investors closely monitor the support below HKD 6.20 and the changes in the pressure area around HKD 6.50, while strictly controlling their positions. If the rebound is merely a correction and the volume is insufficient, it is advisable to treat the "inducing buying" trap below the resistance line with caution to prevent losses from false breakouts
DAMAI ENT (1060.HK) has been operating under pressure in recent trading days, once again showing a trend of reduced trading volume in the morning session. The market is highly focused on the capital game around the resistance line. Currently, the technical indicators show that the daily MACD remains in a death cross state, with an overall bearish atmosphere being quite strong. Recently, the stock price has been weakly fluctuating around HKD 6.20-6.40. The capital on the market is hesitant before the resistance level and has not yet formed a sustained and effective upward force. Throughout this phase, after experiencing a continuous decline, the short-term divergence has increased, and the oversold condition has slightly eased. Yesterday, there were signs of partial capital inflow in the intraday trading, but no sector linkage has been formed yet. The shrinking volume indicates that the main force has not yet used its full strength to push up, and most investors remain cautiously on the sidelines. In the short term, if today's trading volume does not show significant expansion, the probability of the stock price continuing to fluctuate around HKD 6.30 is high. Only if the main capital gathers and breaks through HKD 6.50 can a short-term reversal signal be confirmed; otherwise, the unusual movements before the resistance level are more likely to be a trap for inducing buying rather than a real opportunity. Considering the overall market environment, the rotation speed of the growth sector is accelerating, and short-term risk appetite is contracting. Investors are advised to closely monitor the support below HKD 6.20 and the changes in the pressure area around HKD 6.50, while strictly controlling their positions. If the rebound is merely a correction and the volume is insufficient, it is advisable to treat the "inducing buying" trap below the resistance line with caution to prevent damage from false breakouts. Overall, the short-term rebound environment for DAMAI ENT is not yet mature, relying heavily on capital inflow and performance in the resistance area. It is recommended to adopt a defensive and steady approach, waiting for signals of structural reversal to appear
