[Warrant Perspective] Strong buying emerges across the telecom sector, with China Mobile challenging resistance at HKD 80.

The stock closed at 78 yuan for the day, down 2.26% from the previous trading day, with a trading volume of 6.972 billion yuan. The overall trend showed a pullback, but technical indicators have already shown clear oversold signals, which is worth investors' close attention.

In terms of specific technical indicators, the most prominent one is the RSI indicator, which recorded 26 and has entered the oversold range in technical analysis. This means that the short-term downward momentum in stock price has weakened somewhat, increasing the probability of a rebound. The MACD signal echoes the RSI to some extent, and combined with the RSI’s oversold characteristics, it provides a buy signal. At the same time, a bullish divergence signal appears, further strengthening the possibility of a short-term rebound.

Regarding moving averages, the stock price closed below the 10-day moving average (79.39 yuan), but remains within the range of the 30-day moving average (81.03 yuan) and the 60-day moving average (83.92 yuan). In the short term, it is pressured by the 10-day moving average, while the medium-term moving average system has not yet shown any obvious deterioration signs.

As for other telecom sector stocks: $CHINA UNICOM (00762.HK)$ On February 2nd, it closed at 7.45 yuan, down 6.29%, with an RSI indicator of 28, also giving a strong buy signal. $CHINA TELECOM (00728.HK)$ It closed at 5.11 yuan, down 5.02%, with technical signals also indicating a strong buy. $CHINA TOWER (00788.HK)$ It closed at 11.14 yuan, down 1.07%, also showing a strong buy signal.

Overall, individual stocks in the telecom sector generally experienced a pullback, but their technical indicators have all entered the oversold zone, simultaneously issuing strong buy signals, suggesting that the sector may soon see a technical rebound. Investors can focus on the overall strength of the sector's rebound.

As of 11:25 AM today (the 3rd), China Mobile's latest price was 78.3 yuan, temporarily rebounding by 0.38%.The resistance levels above are focused on 80 yuan (Resistance 1) and 81.4 yuan (Resistance 2), where 80 yuan is also close to the 10-day moving average, making it relatively difficult to break through without sufficient trading volume. The key support levels below are mainly at 76 yuan (Support 1) and 74.6 yuan (Support 2), both of which are important short-term defensive areas. If they hold, the rebound momentum could be further unleashed.

Moreover, China Mobile's 5-day volatility reached 7.1%, with a 63% probability of increase, indicating that short-term fluctuations are acceptable. Investors should focus on the strength of support levels and the breakout of resistance levels while managing their positions appropriately.

Review of Warrants and Product Highlights:

Looking back at the China Mobile-related CBBC (Callable Bull/Bear Contracts) recommended on January 27, as the underlying stock fluctuated within 5 days, related products achieved good gains. Specifically, the underlying stock, China Mobile, rose by 3.06% over 5 days, correspondingly, $HS#C MOBRC2709A.C (60502.HK)$ with an increase of 18% after 2 days, $UB#C MOBRC2709A.C (58025.HK)$ and a rise of 19% after 2 days; in terms of warrants, UBS call warrant (24989) gained 30% after 2 days, and Bank of China call warrant (24413) increased by 20% after 2 days. Overall, they followed the rhythm of the underlying stock, achieving solid returns.

Today’s product highlights balance safety and flexibility:

Based on China Mobile's technical trend (oversold coupled with strong buy signals), combined with key indicators such as leverage, premium, and implied volatility of warrant products, the following two call warrants are selected for investors’ reference:

① $UB-CMOB@EC2609A.C (24989.HK)$ : Exercise price at 88.93 yuan, actual leverage at 10.2 times. The core advantage lies in its reasonable leverage level and relatively ideal implied volatility, avoiding excessive premium eroding profits. Suitable for investors optimistic about short-term rebounds and seeking stable leveraged returns.

② $BI-CMOB@EC2609A.C (24413.HK)$ : Exercise price at 88.88 yuan, actual leverage at 10.6 times. The leverage is relatively high, suitable for investors confident in short-term rebound momentum and able to withstand certain fluctuations. Note the risks brought by leverage and manage investment amounts reasonably.

Risk Warning:Warrants are derivatives with leverage effects and higher volatility than the underlying stock. Whether calls or puts, there are inherent risks. Investors should assess their risk tolerance, carefully check key information such as exercise price and expiration date, invest within means, and avoid blind investments.

China Mobile's RSI is oversold. Would you choose to position yourself in call warrants now, or wait for confirmation of support? A: Position in call warrants. B: Wait for confirmation.

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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 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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