Short-term Analysis of Yangtze Optical Fiber and Cable (06869): What are the Key Price Levels After a Strong New High?

As of February 24, 2026, the recent performance of Yangtze Optical Fiber and Cable (06869) has attracted significant market attention. This article will provide a comprehensive short-term analysis by combining the latest market news, technical trends, key support and resistance levels, and a review of warrant performance.

Market News and Background Analysis (As of February 24, 2026)

Recently, the share price of Yangtze Optical Fibre and Cable has significantly strengthened, mainly benefiting from substantial improvements in industry fundamentals. According to the latest market news, the optical fibre market is experiencing a strong cyclical turning point:

- Industry data hits new highs: Institutional reports indicate that in January 2026, the price of G.652.D single-mode fibre in the Chinese market reached a seven-year high, with an average price ranging between RMB 35 to 40 per core kilometre, showing a monthly increase of over 75%. This rise confirms the industry’s upward pricing trend.

- Surge in demand: As the artificial intelligence (AI) wave sweeps across the globe, the demand for low latency and high bandwidth in computing networks has reached unprecedented levels, directly driving the demand for high-performance optical fibres and cables.

- Supply-side constraints: Some optical fibre manufacturers report that production lines are running at full capacity, yet delivery shortfalls persist, indicating a tight supply situation.

However, while the stock price has risen sharply, investors need to be mindful of potential risks. Data from the Hong Kong Stock Exchange shows that on February 23, a shareholder transferred shares from Citi to Morgan Stanley Hong Kong Securities, involving a market value as high as HKD 950 million. This move may signal adjustments in major shareholders’ positions, which deserves market attention.

Technical Analysis and Support/Resistance Levels

According to data as of February 23, 2026, Yangtze Optical Fibre and Cable (06869) closed at HKD 127.7, with a daily increase of 14.43%, and trading volume surged to HKD 1.295 billion, indicating active buying interest. Technical indicators show complex signals of both bullish and bearish trends.

- Moving Averages: The stock price is far above MA10 (HKD 108.86), MA30 (HKD 77.82), and MA60 (HKD 60.96), with moving averages showing a bullish arrangement, confirming an established medium- to long-term upward trend.

- Momentum Indicators: The RSI(14) is as high as 83, entering the 'overbought' zone. This suggests that the short-term rise has been too rapid. Although in a strong trend, 'overbought can become even more overbought,' but the risk of a pullback is accumulating.

Oscillators: Multiple oscillators are issuing 'sell' or 'neutral' signals, including a 'top divergence' in the momentum oscillator and a sell signal from the rate-of-change indicator, suggesting that short-term upward momentum may slow down.

Key Price Level Analysis:

1. Support levels:

Primary support: RMB 102. This is the first support provided by the data and also the high platform before the recent breakout, offering strong support.

Key support: RMB 79.2. This is the second support level, close to the MA60 moving average position, representing an important watershed for the medium-term trend.

2. Resistance levels:

Initial resistance: RMB 146.9. This is the first resistance level provided by the data and represents the next psychological level after the stock price reached a new high.

Next resistance: RMB 161.3. The second resistance level can be considered a potential short-term target.

Review of Warrants (Performance two days after mentioned date)

A review of the two Longfor call warrants mentioned on February 16 shows their outstanding performance over the following two days (February 17-18), significantly outperforming the underlying stock.

First, Citi's call warrant (25148) recorded a 25% increase within the two trading days after being mentioned. During the same period, Morgan Stanley’s call warrant (25071) gained 21%. In comparison, the underlying stock rose by 11.04%, meaning both warrants clearly outperformed the stock.

This reflects the leverage characteristic of warrants as a derivative tool: when the direction of the underlying stock aligns with expectations, it can amplify returns. However, investors should also be aware that leverage is a double-edged sword; if the underlying stock moves in the opposite direction, losses will also expand proportionally. Additionally, warrant prices are affected by implied volatility and time decay, which makes them fundamentally different from trading the underlying stocks.

Warrant Product Recommendations and Terms Analysis

For short-term positioning, choosing the right terms for warrants is crucial. The following two products each have distinct features that can complement different technical position strategies:

Morgan Stanley Call Warrant (25655) $MS-YOFC@EC2608A.C (25655.HK)$

This product has the lowest premium and implied volatility, meaning its price is relatively less affected by time decay, and holding costs are more controllable. In terms of terms, its strike price is 139.9 yuan, higher than the current stock price of 127.7 yuan, placing it in the slightly out-of-the-money range. Notably, this strike price level is just below the first resistance level of 146.9 yuan identified in our technical analysis. If investors expect the share price to gradually rise to challenge the 146.9 yuan resistance based on technical analysis, this warrant can serve as a tool to track that potential upside. Its 2.1x leverage offers an appropriate boost when capturing trending movements.

HSBC Call Warrant (25353) $HS-YOFC@EC2611B.C (25353.HK)$

This product provides a more balanced approach between leverage and implied volatility. With a leverage ratio of 1.8x, slightly lower than the previous one, its strike price of 138.69 yuan also falls into the out-of-the-money category. This product’s feature lies in its relatively ideal implied volatility level, meaning that when the underlying stock experiences a rapid breakout, the warrant price increase will closely follow the stock's performance, reducing potential discounts caused by a drop in implied volatility. Also targeting the challenge of the 146.9 yuan resistance, this warrant serves as another alternative, suitable for investors who pay close attention to changes in implied volatility.

Interactive Questions

1. Poll-style: For the short-term trend of Changelong (06869), what do you think will happen next:

A) Maintaining strength, breaking through the 150 yuan mark first

B) Consolidating before the 146.9 yuan resistance level, retesting support at 110-120 yuan

2. Sharing-style: When deploying strong stocks, do you prefer choosing highly leveraged out-of-the-money warrants to capture sharp increases, or selecting at-the-money products with stable implied volatility to manage risks? Feel free to share your thoughts.

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 losses or damages caused by reliance on the information in this article. Technical analysis only shows whether certain technical conditions are met; a comprehensive evaluation of asset performance should incorporate other data, and trading decisions should not be made solely based on this article. Please note that past performance is not indicative of future results. Follow Jenny's HK stock warrants for more professional insights.

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