Analysis of 601606.SH (长城军工) as a Hot Stock: Drivers and Market Performance

Analysis of 601606.SH (长城军工)

601606.SH is the stock of Anhui Great Wall Military Industry Co., Ltd., a military industry company listed on the Shanghai Stock Exchange [0].

Recent Performance

On November 17, 2025, the stock rose by 10.02% (limit up) with a trading volume of 1.828 billion yuan and a turnover rate of 18.28% [0]. This performance aligns with the broader rise in the military industry sector [3].

Technical Indicators

Technical analysis reveals:

• RSI(14) = 72.3 (overbought condition) [0]
• MACD line above signal line, indicating positive momentum [0]
• OBV trending upward, suggesting buying pressure [0]
• Price突破 Bollinger Bands upper band [0]

Market Drivers

1. Sector Support: Policy from the 15th Five-Year Plan and the Air Force’s manned-unmanned collaboration announcement boosted sector sentiment [4].
2. Capital Inflows: Net inflow of 140 million yuan on November 14 [8] and 1.828 billion yuan on November 17 morning [0].
3. Company Fundamentals: H1 2025 military revenue +33.07% and R&D +18.37% [0].

Risk Note

Overbought RSI suggests potential short-term correction [0].