Zijin Mining consolidates at 36.8 yuan; earnings and metal prices have not driven a breakout, and the short-term support level remains at 36.37 yuan.

Last Friday (May 24), Zijin Mining closed at 36.800 yuan, with weak market sentiment. Comments generally reflected disappointment and a wait-and-see attitude. Although some investors remain optimistic about the long-term value of strategic assets like gold, copper, and lithium, the short-term focus is clearly on the lack of stock price growth, uninspiring earnings, falling gold prices, and drag from A-share performance, indicating insufficient confidence in Zijin Mining’s short-term outlook.

In terms of the mining sector, gold and copper stocks were relatively resilient last Friday (the 24th). Among them, $ZHAOJIN MINING (01818.HK)$ rose by 0.34%, with a technical signal of 'Strong Buy'; $SD GOLD (01787.HK)$ increased by 0.72%, with a technical signal of 'Buy'; $JIANGXI COPPER (00358.HK)$ climbed by 0.43%, also with a technical signal of 'Buy'. In contrast, Zijin Mining (02899) edged down by 0.27%, with a technical signal of 'Neutral'.

This indicates that Zijin's sideways consolidation is occurring in an environment where peers (especially gold and copper stocks) generally show bullish technical signals, even reaching 'Strong Buy' levels. Its 'Neutral' signal contrasts with the positive signals from peers, highlighting market caution towards its short-term trend. This is also a technical manifestation of investors feeling that 'earnings and metal prices have failed to drive a breakout.'

Comments reveal that many investors are questioning why the company’s strong earnings haven’t supported the stock price, with some believing positive results no longer translate into upward momentum. Some investors are now waiting for lower levels, around HK$34.5 or even near HK$29-30, before considering buying, reflecting low interest in chasing the current price. Others feel that stabilization at this point is already decent, indicating weak but not panicked market sentiment.

Technically, Zijin closed at HK$36.800 last Friday, close to its 20-day line at HK$36.372 and 30-day line at HK$36.425, still within a sideways consolidation range. The share price remains below the 5-day line at HK$37.372 and 10-day line at HK$37.358, suggesting short-term resistance persists above, with no clear signs of strengthening yet. The Relative Strength Index stands at 45.515, showing moderate momentum; the middle band of the Bollinger Bands is at HK$36.372, with the current price slightly above it, indicating that while the trend isn’t too weak, breakout strength is insufficient.

The short-term inflection point lies at HK$36.372. If it can hold above this level and reclaim HK$37.372, the stock may have a chance to retest HK$39.064;If it breaks below HK$36.372, a retest of HK$33.680 should be monitored,at which point market sentiment favoring lower entry points may further intensify. It is not advisable to prematurely conclude a turnaround at this stage; a more reasonable approach is to view it as ongoing sideways consolidation.

Reply to some investors' views:

@大吉大利888du If A-shares continue to fill the gap, Zijin Mining in the Hong Kong stock market will also be under pressure, with 36.372 yuan being the key level

@熱情洋溢的衛斯理 The short-term performance is indeed on the weaker side; a rebound above 37.372 yuan would indicate improvement

@231245532 Earnings have not immediately driven an upward trend; early entrants should first see if 36.372 yuan can hold firm

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

Key deployment: If it holds above 36.372 yuan, consider a rebound play; breaking above 37.372 yuan may provide an opportunity to test 39.064 yuan; if it fails to hold 36.372 yuan, watch for a short-term retest of 33.680 yuan

Strategy One | Hold above 36.372 yuan for a rebound play

$HSZIJIN@EC2607A.C (20031.HK)$ | Strike price 36.99 yuan | Actual leverage 6.3x | Close to current price and resistance area, suitable for capturing a short-term rebound after support stabilizes

$HUZIJIN@EC2606B.C (20025.HK)$ | Strike price 38.00 yuan | Actual leverage 7.4x | Higher flexibility, suitable for following up when rebound momentum improves

$UBZIJIN@EC2612A.C (25834.HK)$ | Strike price 46.12 yuan | Actual leverage 4.0x | Higher strike price but longer duration, suitable for those optimistic about medium-term continuation without wanting to deploy too close to current prices

Strategy Two | Breakout above 37.372 yuan to chase upside

$CIZIJIN@EC2607B.C (27524.HK)$ | Strike price 38.02 yuan | Actual leverage 6.8x | Close to breakout target, suitable for chasing momentum after confirming a break above resistance

$HUZIJIN@EC2606A.C (19581.HK)$ | Strike price 29.01 yuan | Actual leverage 4.2x | In-the-money product, higher defensive capability, suitable for a steadier deployment after breakout

$UBZIJIN@EC2612A.C (25834.HK)$ | Strike price 46.12 yuan | Actual leverage 4.0x | Higher strike price, suitable for those optimistic about further upward movement post-breakout

Strategy Three | Weakens upon breaking below 36.372 yuan

$UBZIJIN@EP2607A.P (25237.HK)$ | Strike price 28.97 yuan | Actual leverage 6.4x | Suitable for deploying a pullback strategy after breaching the watershed to capture continued weakness testing 33.680 yuan

$HSZIJIN@EP2607A.P (25087.HK)$ | Strike price 28.97 yuan | Actual leverage 6.5x | Slightly higher leverage, suitable for an aggressive bearish stance after confirming weakening

$MSZIJIN@EP2607A.P (25188.HK)$ | Strike price 28.97 yuan | Actual leverage 6.6x | Higher flexibility, suitable for use during an accelerating short-term downtrend

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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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