[Warrant Insights] Li Ning's price-volume divergence; resistance at HKD 21.7 becomes a key test

On February 4, the overall sentiment in Hong Kong's stock market sports apparel sector was positive, with most stocks recording gains, except for $XTEP INT'L (01368.HK)$ a slight decline. Among them, $ANTA SPORTS (02020.HK)$ 、 $LI NING (02331.HK)$

、 $SHENZHOU INTL (02313.HK)$ 、 $BOSIDENG (03998.HK)$ the increases were over 1.5%, indicating that the sector is showing signs of recovery.

Based on the day's data, we will break down the trends, technical indicators, support and resistance levels of five core stocks for investors' reference:

1. Li Ning (02331): The share price rose but trading volume contracted, signaling caution from a technical perspective.

The closing price on the 4th was HK$20.92, a daily increase of 2.45%, with a turnover of HK$390 million. The trading volume has fallen for two consecutive days, showing a divergence between price and volume, which deserves special attention from investors.

The RSI is 55, in the neutral range, showing neither overbought nor oversold conditions; the share price is above the MA10 (HK$20.58) but below the MA30 (HK$19.91), indicating that the short-term trend is slightly stronger than the medium-term trend; the technical signal summary is "Sell," with an intensity of 10, reflecting that the major technical indicators are cautious about its future performance.

Support and Resistance: Short-term support levels are at HK$19.7 and HK$19.4, while resistance levels are at HK$21.7 and HK$22.4.

We 【Hong Kong Stock Report】February 4th [Hong Kong Stock Podcast] Hang Seng Index, Tencent, Xiaomi Group, Li Auto, China Resources Beer, Li NingSome commentary mentioned Li Ning: the share price continued to rise, but some investors asked if it could challenge HK$30. Here, we objectively remind that the short-term resistance level is around HK$21.5. After breaking through this, it may test HK$22.5. Reaching HK$30 will take longer and may not be achievable in the short term. We recommend observing the performance at HK$21.5 and HK$22.5 step by step. $Hang Seng Index (800000.HK)$$TENCENT (00700.HK)$$XIAOMI-W (01810.HK)$$LI AUTO-W (02015.HK)$$CHINA RES BEER (00291.HK)$

2. Anta Sports (02020): Strongest trend, with technical signals leaning bullish. Closing price on the 4th was HK$79.30, a daily increase of 1.93%, with relatively strong share price performance. The RSI is 46, close to the neutral range, with buying and selling forces relatively balanced; the share price is above the MA10 (HK$77.98) and MA30 (HK$80.13), with moving averages arranged relatively favorably; the technical signal summary is "Buy," with an intensity of 8, and the rate-of-change indicator suggests "oversold, possibly forming a bottom, Buy." Short-term support is at HK$76.8, with key resistance at HK$81.9. Breaking through resistance may offer further upside potential.

3. Xtep International (01368): Narrow range fluctuation, direction yet to be determined. Closing price on the 4th was HKD 5.16, a slight drop of 0.39% for the day, making it the only stock in the sector to record a decline. The RSI is 55, at a neutral level; the share price is close to MA10 (HKD 5.11) and MA30 (HKD 5.11), with moving averages converging, and no clear trend has formed yet. Technical signals are summarized as 'Neutral', with strength 8, multiple indicators showing no clear direction, requiring further confirmation. In the short term, trading occurs within the narrow range between support 1 at HKD 5.36 and resistance 1 at HKD 5.56, volatility is low, and a breakout from this range may determine the short-term trend.

4. Shenzhou International (02313): Resistance broken, but divergence risks remain. Closing price on the 4th was HKD 62.70, a daily increase of 1.54%, successfully breaking through short-term resistance. The RSI is 47, neutral leaning weak, not yet in oversold territory; the share price is above MA10 (HKD 62.11) and MA30 (HKD 62.23), showing steady performance; however, technical signals are summarized as 'Strong Sell', strength 10, diverging from upward price movement, and caution is needed regarding potential pullback risks. Short-term support is at HKD 61.1 (previous resistance turned support), and attention should be paid to whether it can hold above this level.

5. Bosideng (03998): Moving averages bullish, but nearing overbought levels. Closing price on the 4th was HKD 4.81, a daily rise of 2.12%, running along an ascending channel. The RSI is 63, with buyers having a slight advantage, approaching overbought territory; the share price is above MA10 (HKD 4.67) and MA30 (HKD 4.54), with moving averages showing a bullish alignment; technical signals are summarized as 'Strong Sell', strength 8, also showing bearish divergence with price trends. Recent support is at HKD 4.63, and if it breaks below this support, the short-term uptrend may end.

Summary: Overall uptrend, with Anta Sports showing the strongest performance, while Xtep International remains relatively weak, indicating significant differentiation within the sector. Going forward, focus should be placed on leading stocks Anta Sports and Li Ning to see if they can maintain key moving averages, and whether the RSI enters overbought territory, which will be crucial for determining whether the sector's upward momentum can continue.

Warrant Review and Selection:

1. Warrant Review: Li Ning-related call warrants performed well

Reviewing the Li Ning-related call warrants recommended on February 2, 2026, both recorded significant gains two days later, with specific data as follows: $UBLININ@EC2605B.C (22224.HK)$ : Two-day rise of 53%, corresponding to a 6.95% gain in the underlying stock Li Ning over the same period; $BILININ@EC2605B.C (22219.HK)$ : Two-day rise of 59%, corresponding to a 6.95% gain in the underlying stock Li Ning over the same period.

Risk Warning: Warrants are derivatives with high volatility; investors should participate rationally based on their own risk tolerance.

2. Warrant Selection (Highlighting one with high leverage)

Based on the day's Li Ning stock movement and technical signals, we have selected one related call warrant, focusing on its product features for investors' reference:

Product Name:$CILININ@EC2609A.C (23932.HK)$: Leverage of 4.2x, which is one of the higher leverage products among current Li Ning-related call warrants; strike price at HK$22.88, close to Li Ning’s short-term resistance levels at HK$21.7 and HK$22.4. If the underlying stock breaks through resistance, it may offer higher returns. Note that high leverage comes with high risk, and investors should exercise caution.

Li Ning shows price-volume divergence. What would you do? A. Reduce position and observe. B. Continue holding. C. Add to position on dips.

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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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