Two major banks are both bullish—has gold passed its worst moment?
[Warrant Perspective] Zijin Mining's technicals appear weak; highly leveraged bearish warrants emerge as hedging choices
On January 19, the Hong Kong-listed gold mining sector showed a divergence with 'price gains and indicator warnings.' Among them, $ZHAOJIN MINING (01818.HK)$ leading with a 3.62% increase, $SD GOLD (01787.HK)$ rising slightly by 0.76%, except for $ZIJIN MINING (02899.HK)$ a slight pullback of 0.35%, closing the day at 39.32 yuan.
From the trading data, Zijin Mining's daily turnover was 1.671 billion yuan, with stable volume showing no signs of abnormal surge or contraction in extreme conditions. Notably, the RSI indicators of the three stocks all broke through 67, with Shandong Gold’s RSI reaching as high as 73, entering the severely overbought zone; Zijin Mining’s RSI stood at 67, on the overbought borderline. More consistently, the technical indicator summary signals for all three were 'sell', with Shandong Gold and Zhaojin Mining’s sell intensity reaching 10, indicating that short-term adjustment pressures have accumulated.
![On January 19, the Hong Kong-listed gold mining sector showed a divergence with 'price gains and indicator warnings.' Among them, $ZHAOJIN MINING (01818.HK)$ led the way with a 3.62% increase, $SD GOLD (01787.HK)$ rose slightly by 0.76%, while $ZIJIN MINING (02899.HK)$ declined marginally by 0.35%, closing the day at HKD 39.32. In terms of trading data, Zijin Mining’s daily turnover reached CNY 1.671 billion, maintaining stable volume without signs of extreme abnormal expansion or contraction. Notably, the RSI indicators for all three stocks exceeded 67, with Shandong Gold’s RSI hitting 73, entering the severely overbought zone, and Zijin Mining's RSI at 67, right at the overbought threshold. More consistently, technical signals for all three recommended 'sell,' with Shandong Gold and Zhaojin Mining showing maximum sell intensity of 10, indicating short-term downward pressure has fully accumulated. In our recent [Hong Kong Stock Broadcast],[Share Link: January 19 [Hong Kong Stock Podcast] Hang Seng Index, Zijin Mining, BYD, Baidu Group, HSBC]we commented on Zijin Mining: its recent performance has been relatively sluggish, with the share price testing lower levels for several consecutive days. Reviewing previous trends, the stock experienced a sustained upward movement, peaking intraday at HKD 46.8. The current share price has entered a correction phase. $Hang Seng Index (800000.HK)$$BYD COMPANY (01211.HK)$$BIDU-SW (09888.HK)$$HSBC HOLDINGS (00005.HK)$ ...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260120/web-1768878861570-EYrUn8sYfs.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
In yesterday's 【HK Stock Broadcast】January 19 [Hong Kong Stock Podcast] Hang Seng Index, Zijin Mining, BYD, Baidu Group, HSBCwe commented on Zijin Mining: recent performance has been relatively weak, with the stock price having dropped for several consecutive days. Reviewing previous trends, the stock had experienced a sustained upward movement, peaking at 46.8 yuan during intraday trading. The current share price has now entered the correction range. $Hang Seng Index (800000.HK)$$BYD COMPANY (01211.HK)$$BIDU-SW (09888.HK)$$HSBC HOLDINGS (00005.HK)$
As of 11:04 AM today (August 20), Zijin Mining is currently trading at 38.8 yuan, down 1.37% temporarily,its support levels are 36.9 yuan (first level) and 34.1 yuan (second level), while resistance levels stand at 41.4 yuan and 44.6 yuan.The current stock price stands at 39.32 yuan, located in the intermediate area between support and resistance. The 5-day volatility is 6.6%, within controllable fluctuation limits. However, multiple oscillation indicators (MACD, CCI, Williams %R, etc.) mostly signal neutral or sell recommendations, with only Bollinger Bands and Ichimoku Cloud leaning towards buy signals. Given the divergence in signals, cautious handling is advised.
Review of Bear & Bull Warrants: Bear warrants showed strength amidst the downturn, presenting opportunities.
Reviewing the performance of previous warrants and bull/bear certificates, Zijin Mining recommended on January 15 $SG#ZIJINRP2812B.P (65844.HK)$ performed remarkably, recording an 18% increase two days later, while the corresponding underlying stock fell by 1.70%, perfectly aligning with short-term adjustment expectations and demonstrating the forward-looking nature of technical signals. For investors who prefer derivatives, this logic of 'weak underlying stock, strong bear certificate' is worth focusing on when overbought signals are dense.
Risk Warning:Derivatives have strong leverage characteristics; for instance, Societe Generale Bear Certificate (65844) has an actual leverage as high as 10.1, which can amplify returns but also escalates risks simultaneously. Investors should avoid blindly chasing gains and instead operate based on the rhythm of the underlying stock’s technical aspects.
![On January 19, the Hong Kong-listed gold mining sector showed a divergence with 'price gains and indicator warnings.' Among them, $ZHAOJIN MINING (01818.HK)$ led the way with a 3.62% increase, $SD GOLD (01787.HK)$ rose slightly by 0.76%, while $ZIJIN MINING (02899.HK)$ declined marginally by 0.35%, closing the day at HKD 39.32. In terms of trading data, Zijin Mining’s daily turnover reached CNY 1.671 billion, maintaining stable volume without signs of extreme abnormal expansion or contraction. Notably, the RSI indicators for all three stocks exceeded 67, with Shandong Gold’s RSI hitting 73, entering the severely overbought zone, and Zijin Mining's RSI at 67, right at the overbought threshold. More consistently, technical signals for all three recommended 'sell,' with Shandong Gold and Zhaojin Mining showing maximum sell intensity of 10, indicating short-term downward pressure has fully accumulated. In our recent [Hong Kong Stock Broadcast],[Share Link: January 19 [Hong Kong Stock Podcast] Hang Seng Index, Zijin Mining, BYD, Baidu Group, HSBC]we commented on Zijin Mining: its recent performance has been relatively sluggish, with the share price testing lower levels for several consecutive days. Reviewing previous trends, the stock experienced a sustained upward movement, peaking intraday at HKD 46.8. The current share price has entered a correction phase. $Hang Seng Index (800000.HK)$$BYD COMPANY (01211.HK)$$BIDU-SW (09888.HK)$$HSBC HOLDINGS (00005.HK)$ ...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260120/web-1768878989012-IQ5iVs1iUs.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
Curated Warrant Bull/Bear Products: Two Choices for Hedging and Speculation
Based on current technical analysis and individual stock movements, two types of suitable products have been selected for retail investors with different needs:
1. Speculative choice: $BPZIJIN@EC2605B.C (23074.HK)$ corresponding to Zijin Mining, with a leverage of 5.3 and an exercise price of 44 yuan. Its core advantage is its leading leverage and low implied volatility. If the stock price breaks through the resistance level at 41.4 yuan, it could yield significant returns.
2. Hedging choice: Societe Generale Bear Certificate (65844), with an exercise price of 43 yuan and an actual leverage of 10.1, is currently the highest-leveraged bear certificate product and can serve as a tool to hedge against downside risks in the underlying stock, fitting short-term bearish expectations.
![On January 19, the Hong Kong-listed gold mining sector showed a divergence with 'price gains and indicator warnings.' Among them, $ZHAOJIN MINING (01818.HK)$ led the way with a 3.62% increase, $SD GOLD (01787.HK)$ rose slightly by 0.76%, while $ZIJIN MINING (02899.HK)$ declined marginally by 0.35%, closing the day at HKD 39.32. In terms of trading data, Zijin Mining’s daily turnover reached CNY 1.671 billion, maintaining stable volume without signs of extreme abnormal expansion or contraction. Notably, the RSI indicators for all three stocks exceeded 67, with Shandong Gold’s RSI hitting 73, entering the severely overbought zone, and Zijin Mining's RSI at 67, right at the overbought threshold. More consistently, technical signals for all three recommended 'sell,' with Shandong Gold and Zhaojin Mining showing maximum sell intensity of 10, indicating short-term downward pressure has fully accumulated. In our recent [Hong Kong Stock Broadcast],[Share Link: January 19 [Hong Kong Stock Podcast] Hang Seng Index, Zijin Mining, BYD, Baidu Group, HSBC]we commented on Zijin Mining: its recent performance has been relatively sluggish, with the share price testing lower levels for several consecutive days. Reviewing previous trends, the stock experienced a sustained upward movement, peaking intraday at HKD 46.8. The current share price has entered a correction phase. $Hang Seng Index (800000.HK)$$BYD COMPANY (01211.HK)$$BIDU-SW (09888.HK)$$HSBC HOLDINGS (00005.HK)$ ...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260120/web-1768879040824-rb08rwZHlW.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
![On January 19, the Hong Kong-listed gold mining sector showed a divergence with 'price gains and indicator warnings.' Among them, $ZHAOJIN MINING (01818.HK)$ led the way with a 3.62% increase, $SD GOLD (01787.HK)$ rose slightly by 0.76%, while $ZIJIN MINING (02899.HK)$ declined marginally by 0.35%, closing the day at HKD 39.32. In terms of trading data, Zijin Mining’s daily turnover reached CNY 1.671 billion, maintaining stable volume without signs of extreme abnormal expansion or contraction. Notably, the RSI indicators for all three stocks exceeded 67, with Shandong Gold’s RSI hitting 73, entering the severely overbought zone, and Zijin Mining's RSI at 67, right at the overbought threshold. More consistently, technical signals for all three recommended 'sell,' with Shandong Gold and Zhaojin Mining showing maximum sell intensity of 10, indicating short-term downward pressure has fully accumulated. In our recent [Hong Kong Stock Broadcast],[Share Link: January 19 [Hong Kong Stock Podcast] Hang Seng Index, Zijin Mining, BYD, Baidu Group, HSBC]we commented on Zijin Mining: its recent performance has been relatively sluggish, with the share price testing lower levels for several consecutive days. Reviewing previous trends, the stock experienced a sustained upward movement, peaking intraday at HKD 46.8. The current share price has entered a correction phase. $Hang Seng Index (800000.HK)$$BYD COMPANY (01211.HK)$$BIDU-SW (09888.HK)$$HSBC HOLDINGS (00005.HK)$ ...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260120/web-1768879040827-Dv1EF6bxM1.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
Do you think gold mining stocks will face a short-term correction? A. Yes B. No C. Observing; In derivative operations, do you value leverage or premium more?Come to the comment section and share your thoughts. Want more analysis? Don’t forget 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.
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