[Warrant Perspective] A 'Strong Buy' signal has appeared, how to seize China Unicom's short-term rebound?
On January 22, the three major Chinese telecom stocks showed some divergence in performance, $CHINA TELECOM (00728.HK)$ demonstrating relatively strong performance with a daily increase of 0.78% to 5.17 yuan; $CHINA UNICOM (00762.HK)$
A slight rebound of 0.40%, closing at 7.62 yuan; $CHINA MOBILE (00941.HK)$ while dropping slightly by 0.25%, closing at 79.00 yuan.
In common, all three stocks are under pressure from medium and short-term moving averages, with closing prices below both MA10 and MA30, reflecting a cautious short-term market sentiment and an overall weak pattern. However, it is worth noting that the RSI indicators for all three are either in or near the oversold zone—China Telecom RSI 23, China Mobile RSI 26, China Unicom RSI 29—with technical indicators summarizing signals giving 'Buy' or 'Strong Buy' indications, suggesting that current prices have a certain defensive nature and potential for a short-term rebound.
We 【HK Stock Report】January 22nd [Hong Kong Stock Podcast] - Hang Seng Index, Tencent, Li Auto, Alibaba, Pop Mart, China UnicomSome commentary on China Unicom: Recent performance has been weak, with the stock price rebounding multiple times to the middle Bollinger Band only to retreat again, remaining in a downtrend. Although the stock price rebounded slightly on January 22, the overall trend remains weak.。 $Hang Seng Index (800000.HK)$$TENCENT (00700.HK)$$LI AUTO-W (02015.HK)$$BABA-W (09988.HK)$$POP MART (09992.HK)$
Technically, China Unicom's stock price has reached the lower band of the Bollinger Bands, with the RSI rising from the oversold zone to 29. The technical summary indicates a 'Strong Buy,' presenting certain technical conditions for a short-term rebound.
![On January 22, the three major Chinese telecom stocks showed some divergence in performance, $CHINA TELECOM (00728.HK)$ demonstrating relatively strong performance with a daily increase of 0.78% to 5.17 yuan; $CHINA UNICOM (00762.HK)$ A slight rebound of 0.40%, closing at 7.62 yuan; $CHINA MOBILE (00941.HK)$ while dropping slightly by 0.25%, closing at 79.00 yuan. In common, all three stocks are under pressure from medium and short-term moving averages, with closing prices below both MA10 and MA30, reflecting a cautious short-term market sentiment and an overall weak pattern. However, it is worth noting that the RSI indicators for all three are either in or near the oversold zone—China Telecom RSI 23, China Mobile RSI 26, China Unicom RSI 29—with technical indicators summarizing signals giving 'Buy' or 'Strong Buy' indications, suggesting that current prices have a certain defensive nature and potential for a short-term rebound. We 【HK Stock Report】[Share Link: January 22nd [Hong Kong Stock Podcast] - Hang Seng Index, Tencent, Li Auto, Alibaba, Pop Mart, China Unicom]Some commentary on China Unicom: Recent performance has been weak, with the stock price rebounding multiple times to the middle Bollinger Band only to retreat again, remaining in a downtrend. Although the stock price rebounded slightly on January 22, the overall trend remains weak.。 $Hang Seng Index (800000.HK)$$TENCENT (00700.HK)$$LI AUTO-W (02015.HK)$$BABA-W (09988.HK)$$POP MART (09992.HK)$ ...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260123/web-1769135480557-Zc3M4CpMlm.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
As of 10:16 AM today (January 23), China Unicom is trading at 7.76 yuan, with a temporary increase of 1.84%.The resistance level is first seen at 7.9 yuan; if broken, it may test 8.25 yuan. On the support side, the primary level to watch is 7.42 yuan, and if it breaks below that, it could further drop to 7.21 yuan.It should be noted that the stock is still in a long-term downtrend, and counter-trend trading for a rebound requires careful risk assessment. Controlling position size and setting stop-losses are crucial.
Based on China Unicom’s technical trend, a selected call warrant product is recommended for investors' reference:
$CI-CUNI@EC2607A.C (24226.HK)$ With a leverage ratio of 8x and a strike price of 8.88 yuan. The core feature of this product is the lowest implied volatility, meaning that when the stock price experiences a short-term rebound, the negative impact of implied volatility fluctuations on the product price will be relatively small. It is suitable for investors expecting a short-term rebound in China Unicom, but they should pay attention to the gap between the strike price and the current stock price, as well as the time to expiration.
![On January 22, the three major Chinese telecom stocks showed some divergence in performance, $CHINA TELECOM (00728.HK)$ demonstrating relatively strong performance with a daily increase of 0.78% to 5.17 yuan; $CHINA UNICOM (00762.HK)$ A slight rebound of 0.40%, closing at 7.62 yuan; $CHINA MOBILE (00941.HK)$ while dropping slightly by 0.25%, closing at 79.00 yuan. In common, all three stocks are under pressure from medium and short-term moving averages, with closing prices below both MA10 and MA30, reflecting a cautious short-term market sentiment and an overall weak pattern. However, it is worth noting that the RSI indicators for all three are either in or near the oversold zone—China Telecom RSI 23, China Mobile RSI 26, China Unicom RSI 29—with technical indicators summarizing signals giving 'Buy' or 'Strong Buy' indications, suggesting that current prices have a certain defensive nature and potential for a short-term rebound. We 【HK Stock Report】[Share Link: January 22nd [Hong Kong Stock Podcast] - Hang Seng Index, Tencent, Li Auto, Alibaba, Pop Mart, China Unicom]Some commentary on China Unicom: Recent performance has been weak, with the stock price rebounding multiple times to the middle Bollinger Band only to retreat again, remaining in a downtrend. Although the stock price rebounded slightly on January 22, the overall trend remains weak.。 $Hang Seng Index (800000.HK)$$TENCENT (00700.HK)$$LI AUTO-W (02015.HK)$$BABA-W (09988.HK)$$POP MART (09992.HK)$ ...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260123/web-1769135530309-NKrcsRfU39.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
China Unicom has touched the lower Bollinger Band + RSI is oversold, would you consider positioning for a short-term rebound? (Yes or no, briefly state your reason). When trading options, do you value leverage more or implied volatility more?
Come to the comment section and share your thoughts.
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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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