[Warrant Perspective] Has NetEase's Three-Day Drop Created Pressure? Full Analysis of Technical Aspects and Warrant Opportunities
January 15th,$NTES-S (09999.HK)$
The adjustment continued, closing at HKD 213.4 on the day with a single-day decline of 3.18%. The trading volume reached HKD 1.361 billion, increasing in tandem with the downward trend, showing market selling pressure. In fact, this decline was not sudden; over the past two trading days, the stock price had already started adjusting from its high position. It previously touched the top of the Bollinger Bands but lacked upward momentum, eventually retreating into a three-day consecutive decline pattern.
We 【HK Stock Report】January 15th [Hong Kong Stock Podcast] Hang Seng Index, Hua Hong Semiconductor, Ganfeng Lithium, NetEase, Hong Kong Exchange, China Construction BankNetEase was also reviewed, and the drop is quite significant. Some investors asked whether they should rush to buy the dip. Here’s a reminder: it’s prudent to first observe key support levels and wait for the stock price to stabilize before taking action. Blindly entering might result in catching a falling knife. $Hang Seng Index (800000.HK)$$HUA HONG GRACE (01347.HK)$$GANFENGLITHIUM (01772.HK)$$HKEX (00388.HK)$$CCB (00939.HK)$
From a technical indicator perspective, the current signals are mixed. The RSI indicator reads 47, remaining in the neutral zone, neither overbought nor deeply oversold. The MACD indicates a sell signal, while the stochastic oscillator is in the oversold zone, suggesting a buy signal as bullish and bearish signals compete. Regarding moving averages, MA10 (HKD 221.94), MA30 (HKD 217.39), and MA60 (HKD 219.03) are intertwined. The stock price broke below short-term moving averages, indicating a weak short-term trend.
![January 15th,$NTES-S (09999.HK)$ The adjustment continued, closing at HKD 213.4 on the day with a single-day decline of 3.18%. The trading volume reached HKD 1.361 billion, increasing in tandem with the downward trend, showing market selling pressure. In fact, this decline was not sudden; over the past two trading days, the stock price had already started adjusting from its high position. It previously touched the top of the Bollinger Bands but lacked upward momentum, eventually retreating into a three-day consecutive decline pattern. We 【HK Stock Report】[Share Link: January 15th [Hong Kong Stock Podcast] Hang Seng Index, Hua Hong Semiconductor, Ganfeng Lithium, NetEase, Hong Kong Exchange, China Construction Bank]NetEase was also reviewed, and the drop is quite significant. Some investors asked whether they should rush to buy the dip. Here’s a reminder: it’s prudent to first observe key support levels and wait for the stock price to stabilize before taking action. Blindly entering might result in catching a falling knife. $Hang Seng Index (800000.HK)$$HUA HONG GRACE (01347.HK)$$GANFENGLITHIUM (01772.HK)$$HKEX (00388.HK)$$CCB (00939.HK)$ From a technical indicator perspective, the current signals are mixed. The RSI indicator reads 47, remaining in the neutral zone, neither overbought nor deeply oversold. The MACD indicates a sell signal, while the stochastic oscillator is in the oversold zone, suggesting a buy signal as bullish and bearish signals compete. Regarding moving averages, MA10 (HKD 221.94), MA30 (HKD 217.39), and MA6...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260116/web-1768533175899-Bij19gGKle.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
In terms of support and resistance, the primary support level is at HKD 206, which coincides with the bottom of the Bollinger Bands and acts as an important short-term defense line. If this level is effectively broken, the stock price will likely retreat back into the '100s', with the next support level seen at HKD 197. Resistance levels are concentrated at HKD 223 (Resistance 1) and HKD 232 (Resistance 2). A short-term breakthrough above HKD 223 is needed to ease the downward pressure. Although the overall technical indicator suggests a buy signal, the strength is only 9, making the signal moderately reliable. It needs to be judged comprehensively alongside support levels.
Reviewing the NetEase-related warrant bull and bear products recommended on January 13th, both put warrants and bear contracts performed well against the backdrop of a two-day decline of 4.22% in the underlying stock. $MS-NTES@EP2603A.P (20769.HK)$ The two-day increase reached 35%, making it the best performer; $UB-NTES@EP2603A.P (20940.HK)$ Following closely behind, with a 31% gain; $UB#NTES RP2701A.P (58935.HK)$ Also recorded a 21% rise, precisely capturing the benefits of this wave of market decline, providing hedging tools for retail investors who prefer derivatives.
![January 15th,$NTES-S (09999.HK)$ The adjustment continued, closing at HKD 213.4 on the day with a single-day decline of 3.18%. The trading volume reached HKD 1.361 billion, increasing in tandem with the downward trend, showing market selling pressure. In fact, this decline was not sudden; over the past two trading days, the stock price had already started adjusting from its high position. It previously touched the top of the Bollinger Bands but lacked upward momentum, eventually retreating into a three-day consecutive decline pattern. We 【HK Stock Report】[Share Link: January 15th [Hong Kong Stock Podcast] Hang Seng Index, Hua Hong Semiconductor, Ganfeng Lithium, NetEase, Hong Kong Exchange, China Construction Bank]NetEase was also reviewed, and the drop is quite significant. Some investors asked whether they should rush to buy the dip. Here’s a reminder: it’s prudent to first observe key support levels and wait for the stock price to stabilize before taking action. Blindly entering might result in catching a falling knife. $Hang Seng Index (800000.HK)$$HUA HONG GRACE (01347.HK)$$GANFENGLITHIUM (01772.HK)$$HKEX (00388.HK)$$CCB (00939.HK)$ From a technical indicator perspective, the current signals are mixed. The RSI indicator reads 47, remaining in the neutral zone, neither overbought nor deeply oversold. The MACD indicates a sell signal, while the stochastic oscillator is in the oversold zone, suggesting a buy signal as bullish and bearish signals compete. Regarding moving averages, MA10 (HKD 221.94), MA30 (HKD 217.39), and MA6...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260116/web-1768533429220-eoQ4TcbHiN.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
A reminder here: leveraged products like CBBCs and callable bull/bear contracts carry significant risks along with high returns, especially during periods of volatile price movements. Strict position control is essential.
Considering the current market situation, we’ve selected two products suited to different market expectations for your reference:
1. $BI-NTES@EC2610A.C (24003.HK)$ : Actual leverage of 4.3 times, with a strike price of $250. Its core advantage lies in reasonable leverage levels, as well as the lowest premium and implied volatility, suitable for investors optimistic about NetEase's mid-to-long term performance and looking to deploy a low-cost rebound strategy.
2. $UB-NTES@EP2603A.P (20940.HK)$ : Actual leverage of 9.3 times, with a strike price of $178.788. Leverage and implied volatility are performing well, with previous notable gains. This product is suitable for short-term bearish investors looking to capitalize on subsequent market adjustments but requires timely profit-taking.
Would you wait until the support level of $206 before considering a position? After this three-day consecutive drop, do you expect NetEase to rebound or continue adjusting? Share your thoughts in the comments section. Want more analysis?Remember to follow 'HK Stock Warrants Jenny' for daily updates!
Disclaimer: 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 shall not be liable for any loss or damage arising from reliance on the information in this article. Technical analysis merely indicates whether certain technical conditions are met; a comprehensive evaluation of asset performance should incorporate additional data. Trading decisions should not be based solely on the content of this article. Please note that past performance is not indicative of future results.
#HKStocks #RealTimeAnalysis #WarrantPicks #WarrantStrategy #DerivativesHedging #HKStocksWarrantsJenny #NetEase #InternetTechStocks #TechnicalAnalysis #HKStockAnalysis
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
Comment (1)
to post a comment