Zijin Mining's low position recovery is incomplete, with the market watching whether earnings and gold price changes can drive a breakout.

After rebounding from the recent low of 31.66, it has gradually stabilized and now moved back near the 5-day and 10-day lines; the short-term trend reflects a recovery from a low position.

From the perspective of the gold and non-ferrous metals sector, the market generally saw moderate gains yesterday (20th). Zijin Mining rose by 1.37%, $ZHAOJIN MINING (01818.HK)$ Up 2%, $CHINAGOLDINTL (02099.HK)$and$CMOC (03993.HK)$ also recorded gains. From a technical perspective, the sector is showing characteristics of 'rebound after overbought correction': Zijin Mining rebounded after overbought correction, indicating effective support; China Gold International is consolidating at high levels.

In comparison, Zijin Mining's RSI is 49 (neutral), with technical signals being 'neutral'. Its stock price closely follows the MA10 (36.93 yuan), suggesting a mild recovery momentum and that it has not yet broken out of the consolidation pattern. This indicates that Zijin’s bottom recovery is not an isolated movement but occurs within an environment where the overall sector is stabilizing but lacks strong catalysts. Breaking through the resistance zone between 37.45 to 38.73 yuan will require external factors such as performance or gold prices to disrupt the current balance.

However, investor comments reveal that market sentiment remains quite divided. On one hand, some anticipate a late-day strengthening and a rebound on Monday, while others are watching for potential support from expectations of U.S. interest rate cuts on metal prices, reflecting hopes for a resurgence in resource stocks. On the other hand, many investors are disappointed by repeated pullbacks, unstable gains, and failure to follow the broader market trend. Some have even begun questioning whether capital flows and stock performance are imbalanced, resulting in an atmosphere of impatience and skepticism.

Overall market sentiment is neutral leaning weak, with a small amount of anticipation for a rebound. The more optimistic side mainly hopes for support from earnings, gold prices, and the macro interest rate environment, wishing for stock prices to rise on positive news. The more pessimistic side focuses on how each rebound fails to sustain, slow rises followed by quick drops, and lack of strength during broader market uptrends, reflecting insufficient confidence in short-term movements.

Common questions focus on three directions: First, whether the stock price can first return above 38 yuan or even surpass 38.5 yuan; second, whether post-earnings announcements can reverse recent weak performance; third, whether gold prices, rate cut expectations, and capital flows might become external drivers for short-term trends.

From a technical perspective, Zijin Mining closed at 37.12 yesterday, with the stock price staying above the Bollinger Bands middle line at 35.7, and the Relative Strength Index (RSI) at 54.18, indicating slight improvement in short-term momentum and more stability than before. However, it has not yet escaped the consolidation phase following a rebound. Resistance remains in the 37.45 to 38.73 range, and until broken, the overall trend still leans towards sideways consolidation.

At this stage, the risk-reward ratio is neutral. Although the stock price has recovered from a low level, the momentum hasn’t been particularly strong, and resistance is very close. If it can stabilize above 36.93 and further break through 37.45, there may be opportunities to test 38.73 in the short term. However, if it falls below 36.93, then a retest of support at 35.7 must be watched. In other words, the most crucial observation point now is not market sentiment itself, but whether the stock price can truly break through the immediate resistance; otherwise, the recovery pattern is still insufficient to reverse the ongoing consolidation trend.

Reply to some investors' views:

@股神巴菲gor

If expectations for U.S. interest rate cuts increase, it theoretically supports gold prices and resource stock sentiment. However, whether stock prices benefit in the short term still depends on whether their own trends can break through resistance.

@231245532

Buying at 38.5 yuan met with a pullback. At this stage, the most important thing is to see if the stock price can get back above 37.448. If there is capital inflow after earnings, there may be opportunities to gradually recover losses, but caution should be maintained until a breakout occurs.

@升上去爆發升上去

The current stock price does feel like it rises slowly and falls quickly, which is related to the ongoing consolidation pattern. If resistance is not broken through, this kind of volatility may not change immediately.

Based on the above analysis, the strategies for deployment can be divided into the following main approaches:

$HS#ZIJINRC2608B.C (56557.HK)$$UB#ZIJINRP2812L.P (56727.HK)$

$GJZIJIN@EC2606A.C (23013.HK)$$HUZIJIN@EP2610A.P (24795.HK)$

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Reminder: This article does not constitute any investment advice.

This article is for reference only and does not constitute any investment advice. The market data, opinions, and analysis contained herein may change at any time without prior notice. We are not responsible for any loss or damage caused by reliance on the information in this article. Technical analysis only shows whether certain technical conditions are met; a comprehensive assessment of asset performance should be conducted using additional data. Decisions to trade should not be based solely on this article. Please note that past performance is not indicative of future results.

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