Morning Trend | China Tower tests support, is a sector rotation opportunity coming?
China Tower (788.HK) has recently shown a weak overall trend, with its stock price fluctuating around the support area of HKD 1.0. During the trading session, mainline capital has flowed out, and trading volume remains at a low level. Technically, the MACD death cross continues, and the green bars have not shown significant narrowing, while the 5-day and 10-day short-term moving averages have yet to turn. Short-term bearish sentiment remains dominant. The company's fundamentals are primarily based on telecommunications infrastructure, with stable business operations; however, it is affected by slowing industry investment growth, narrowing profit margins in 5G construction, and industry consolidation, leading to insufficient growth expectations. On the external front, global technology sector pressures and tightening liquidity in the Hong Kong market have caused China Tower to be constrained by sector rotation effects, resulting in low market participation enthusiasm. Technically, the key focus is on the HKD 1.0 level; if there is unusual capital movement and an increase in volume during today's trading session, and the stock price holds the support and shows consecutive rebounds, it may lead to short-term rotation opportunities in the sector. If it continues to break down with reduced volume, the downside space will further open up. In terms of operational advice, investors should closely monitor the relationship between volume and price as well as the main capital flow throughout the day, waiting for strong signals before lightly entering, to guard against the risk of oscillation and repetition. China Tower is still primarily defensive in the short term, and the rhythm of sector rotation needs to wait for clear signals
Technical Forecast·
