Jinyao Pharmaceutical and Huadian Liaoning Energy's logical breakdown

Today’s rebound on a countertrend—does tomorrow’s repair show continuation? It bounced back on lower volume; we still can’t see signs of continuation. Compared with March 24 and March 27, we found that today’s repair is getting weaker and weaker, so its focus is downward. Therefore, Zhuque Road believes that tomorrow’s repair will not show continuation. [Taoguba]

Pre-opening auction assessment: Furon Technology had a quant sell-side order pressure of 781 million, while Huiyuan Communications had 537 million. In the communications direction, the market’s focus is downward. From the auction, we can see that capital’s attitude is still relatively pessimistic. But sentiment has already been “ice-cold” for two consecutive sessions. Since there is an expectation of repair today, no matter how you look at it from the broader trend or from the auction, this repair expectation can’t justify too much optimism. Today’s repair means that tomorrow will most likely still be downward. The auction opening has made this even clearer: capital’s long posture isn’t high. Market turnover has shrunk to the lowest point since August 5, 2025. In the short term, it’s hard to return to above 2 trillion. Therefore, we need to focus more on the core of hot themes.
Opening performance: Xinneng Taishan, Tongyu Xin材, and Shengquan Group all hit their daily limit at the open, driving the communications sector higher. Dongyue Silicon Materials drove the rise in organosilicon.
In-session performance: The index rose but didn’t increase volume. Communications pulled back somewhat, while chemicals continued to strengthen.

Thinking recap:
1. Delwin (德明利) logic breakdown: On Friday, among Mingspu Optical Magnetics, Optoelectronics Shares, and Delwin, the choice was Delwin. Today, Delwin also has the highest gain, and the logic is the one of storage-chip price increases and production shutdowns continuing. Delwin’s adjustment has been fairly smooth. In terms of patterns, on March 12 it formed a bearish K-line (阴K), followed by a round of repair. On March 19–20 there was a pullback with two bearish K-lines, followed by another round of repair. On April 1, 2, and 3 there were three bearish K-lines. The bearish K-line on the 3rd was getting smaller and smaller, and the downside room was also getting smaller. So, based on this pattern, the probability of repair is higher. Calculating the payoff ratio, it’s also relatively worthwhile. It follows the 1-2-3 pattern走势. Today, as expected, it delivered a big bullish candle.

2. Jin Yao Pharmaceutical (津药药业) logic breakdown: During the consolidation phase of the index, the strength of innovative drugs was the highest. The core of innovative drugs is Jin Yao Pharmaceutical and Wanbangde. Recently, the follow-up has been noticeably stronger than the trend. On Thursday, Jin Yao Pharmaceutical capped the 5-board and the height was the same as the previous big brother Menuo Phama’s height. That’s why we judged that Jin Yao Pharmaceutical isn’t a small弟 of Menuo Pharmaceuticals. On Friday’s thinking, there wasn’t a truly great entry position. On a disagreement day, the odds of capping the daily limit on the board weren’t great. But on Friday it closed at 6 boards breaking through the suppression of 5 boards—this was beyond expectations. On Friday, the innovative-drug sector was pulling back; today Jin Yao Pharmaceutical had an opportunity to get attention with a slightly red close. In the auction it was at 4.7%. Therefore, Zhuque Road expects it will still have a move to probe lower. Worst-case scenario: it breaks the board on a bullish day. Then, below the auction price is the key point to think about; the rest is up to the market.

3. Hua Dian Liaoneng (华电辽能) logic breakdown: Hua Dian Liaoneng has reached an 8-board high. Now that Jin Yao Pharmaceutical is beyond expectations with continued upside potential, Hua Dian Liaoneng previously made contributions to the market, and the pullback positions are already safer. If Jin Yao Pharmaceutical continues upward, it will have a reverse-boost effect on Hua Dian Liaoneng. Stocks that have contributed to the market should not be judged as A-kill. It looks pretty good today in terms of gains.
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Market analysis:**
1. Macro trend: On Tuesday, 3,804 stocks rose and 1,300 fell. 93 hit the limit-up, and 4 hit the limit-down. There was a large pullback of 1, and the overall strength was 68. Based on the above market data and combined with Zhuque Road’s expectation framework, we are currently in a consolidation phase, with tomorrow expecting a weak divergence.

2. Minor trend: Today the market gave a countertrend rebound on shrinking volume; the index didn’t repair much. Today’s sentiment was actually not bad. So tomorrow should be a divergence day, and most likely it will be a weak divergence. But today many of the movers are oversold rebound candidates. The chemicals sector led. If tomorrow at the open there is an abrupt selloff plunge, there’s no need to be afraid. At present, the market’s ability to generate winning effects has already shown up, mainly reflected in follow-through at mid-to-low positions.

3. Sentiment: Jin Yao Pharmaceutical went for a volume-backed limit and capped at 7 boards. The yellow line is above, and there’s a relatively large gap with the white line. Today, 93 stocks hit the limit-up, so sentiment is healthy.

Hot sector analysis: Chemicals (methanol, organosilicon, phosphoric chemical industry, coal chemicals) Communications (copper-clad laminate, fiber concept) Innovative drugs Football
Methanol: Jinniu Chemical (金牛化工)
Organosilicon: Dongyue Silicon Materials, Xinan Shares
Phosphorus chemicals: Jinzhengda (金正大)
Coal chemicals: Longxing Technology
Copper-clad laminate: Shengquan Group
Fiber concept: Huiyuan Communications, Xinneng Taishan
Innovative drugs: Jin Yao Pharmaceutical
Football: TEDA Shares, Nanjing Sports (金陵体育)
· Chemicals logic: With crude oil rising, it drove composite fiber prices to rise to varying degrees. Overall polyester prices rose more than 10% within the past month. Chemicals today is in a broad-based up move (普涨); methanol is the strongest, which is highly correlated with oil and has strong external drivers. Today in chemicals, it’s all first-board entries with no high-position stocks. Even with such high sector strength, no capital went to a high-position. On Friday there were three first-board movers in chemicals—Suli Shares, Zhenhua Shares, and Sanwei Shares—but none of them stood out. That’s why chemicals is more of a one-day trip, and it’s hard to sustain continuity unless external catalysts continue.
· Communications logic: The global fiber-price upcycle driven by AI data center construction and geopolitical demand has been further confirmed. Latest data shows that in the China market, the G652.D optical fiber price has risen more than 400% from last year’s low. Institutions expect that the global supply-demand gap in 2026–2027 will expand to 15%. Capital has been involved relatively deeply in communications. Within communications, optical fiber is the strongest, and the logic is the hardest. Right now, Xinneng Taishan, Changfei Optical Fiber, and Huiyuan Communications are all moving under the fiber concept. Tomorrow the expectation for Huiyuan Communications is still a one-word-limit expectation (一字). Because on Friday the sector closed with a bearish K-line, and today Huiyuan Communications also opened with a one-word limit. Today Huiyuan Communications drove the sector higher, and the sector then formed a bullish K-line. Tomorrow’s expectation is stronger; if it doesn’t strengthen, that would be under expectations. If that happens, this communications sector will most likely experience divergence.
· Football logic: The football super league has a dense schedule of matches in April: Zhejiang Province on April 6, Jiangsu Province on April 11, Hubei Province on April 12, Shandong Province on April 18, and Guangdong Province from April 25 to 26. World Cup tickets increased in price; for the US-Canada-Mexico World Cup, the most expensive ticket price is over 75,000 yuan. Since the sector has expectations, today there was a rebound, and today’s football stocks also rose fairly well.
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Summary:** Today is a repair day, but today’s volume is still shrinking, showing that at this level, capital is still pessimistic, with the focus downward. Tomorrow the expectation is divergence. But if tomorrow’s divergence is strong, an intraday sharp selloff could be a gambling point. If it’s a slow decline, the “gamble” should be postponed. Right now it’s a stock-inventory or shrinking-volume game, and the requirements for trading are getting higher. In a choppy market, timing matters—if the rhythm is misjudged, you’ll be in a very passive position. If you can’t figure it out, even if you don’t trade, don’t easily make a move in a market you don’t understand.**

Finally, I’ll leave everyone with a question: does Jin Yao Pharmaceutical target 8 boards? Heroes from all corners are welcome to share your insights and views—we’ll exchange and discuss together, and I will reply and participate in everyone’s discussion.

Thanks to the strong traders @匡敦清 @宇境臻 @翔伟 @米开朗基瑞 @梦控师光年 @无名可用 @自在金 @戴珍珠耳环的少女 @瓢城朱哥 @慕容追枫 @F炒股小白 @在下笑春风 @牵牛上山打老虎 @412是22 for supporting Zhuque Road with points! Thanks to @A海阔天空1 @匡敦清 @猴哥66 @梦控师光年 for the support in sending “boost coupons” to contribute to Zhuque Road. I sincerely wish the brothers who support Zhuque Road: limit-ups nonstop! A long red run in the stock market! Congratulations and get rich!

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