How to view the post-holiday market trend in Hong Kong stocks?
$KUAISHOU-W (01024.HK)$The stock initially rose but then fell today, with intraday losses exceeding 5% at one point. The important psychological level of 70 yuan has been broken. It has currently recorded its seventh consecutive trading day of decline, hitting a new low since the beginning of the year. Technical patterns indicate a clear weakening signal.
From a technical perspective, Kuaishou's stock price has now fallen below all major moving averages, including MA10, MA30, and MA60, indicating short-term technical weakness. However, an in-depth analysis of various technical indicators reveals different signals. The RSI indicator is currently at 37, close to the oversold region, suggesting that the stock may have fallen excessively. More notably, the stochastic oscillator clearly shows a 'buy signal within the oversold zone,' while the CCI indicator also issues a 'buy' signal. Although the Williams %R indicator displays an 'oversold condition with a neutral signal,' overall it leans positive.
From a key price level analysis, Kuaishou's crucial support levels are currently at HK$65.3 (Support 1) and HK$57.3 (Support 2), which will serve as significant defenses if the stock price falls. On the upside, resistance is found at HK$76.1 (Resistance 1) and HK$83.9 (Resistance 2).


Product Review:
Reviewing January 30th, Kuaishou showed a significant downtrend over the following two days, with a cumulative decline of 8.36%. In this market environment, products inversely linked to Kuaishou’s stock performance (such as bear certificates and put warrants) performed exceptionally well. The leverage effect of bear certificates was particularly notable, $HS#KUASORP2712F.P (57031.HK)$ and $JP#KUASORP2812C.P (66632.HK)$ with gains of approximately 66% and 65%, respectively, fully demonstrating the powerful leverage effect of bear certificates in a clear downtrend. Put warrants also benefited accordingly, $MSKUASO@EP2605A.P (24643.HK)$ and $BPKUASO@EP2606A.P (21458.HK)$ recording increases of over 35%.

Product Highlights
In terms of call warrants, $UBKUASO@EC2606B.C (22762.HK)$ With 4.6x leverage and a strike price set at $77.05, it not only leads its peers in terms of leverage but also has relatively low premium, making it suitable for investors optimistic about a rebound towards the resistance level at HK$78.2; $BIKUASO@EC2606C.C (23201.HK)$ Similarly, with a strike price of $77.05 and 4.7x leverage, its core advantage lies in relatively lower implied volatility, effectively reducing volatility risk, making it suitable for investors seeking stable leveraged returns. Regarding put warrants, $SGKUASO@EP2606A.P (24512.HK)$ offering 3.6x leverage with a strike price set at $69.95, it stands out not only in terms of leverage but also maintains low implied volatility, making it appropriate for investors expecting further declines towards the support level at HK$63.9; $UBKUASO@EP2606A.P (24517.HK)$ Also with a strike price of $69.95 and 3.8x leverage, its premium and implied volatility are among the lowest in its category, offering excellent cost-effectiveness, suitable for cost-sensitive investors.
Regarding bull and bear certificates, $JP#KUASORC2606A.C (60760.HK)$With an actual leverage of 5.2 times and a recovery price set at HK$58.5, it not only leads in leverage levels but also has a relatively lower premium, making it suitable for investors expecting the stock price to stabilize and rebound from the support level of HK$65.3.$UB#KUASORC2607A.C (67943.HK)$Leading its peers with an actual leverage of 5.5 times, the recovery price is set at HK$59, offering the lowest premium level, making it ideal for investors seeking high-leverage returns. Among bearish products,$UB#KUASORP2812D.P (57458.HK)$with an actual leverage of 6.1 times and a recovery price set at HK$78, it offers the highest leverage in its category, making it suitable for investors anticipating that the stock price rebound will be resisted at the resistance level of HK$76.1.
Investors need to closely monitor Kuaishou's stock price trend. If the stock price stabilizes at the support level of HK$65.3 and starts to rebound, they may consider deploying call warrants or bullish products; if the stock price breaks below the support level, put warrants or bearish products will have greater trading value. It should also be noted that leveraged products carry higher risks, and investors should carefully choose based on their risk tolerance and market judgment.

Do you think Kuaishou's recent breakdown below the key level of HK$70 is a technical shakeout or an early sign of fundamental deterioration? After seven consecutive trading days of decline, how likely is a technical oversold rebound? As a professional investor, would you choose to accumulate at the current level or continue to stay on the sidelines? We invite everyone to share your technical analysis insights and trading strategies in the comments section. Also, feel free to follow the professional account 'Hong Kong Stock Warrants Jenny' for more in-depth market analysis and technical interpretations. Want to see more analysis? Be sure to follow 'Hong Kong Stock Warrants Jenny' for daily updates!
Warm Reminder: This article does not constitute any investment advice. It is for reference only and does not constitute any investment recommendation. 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 indicates whether certain technical conditions are met; asset performance should be comprehensively evaluated with additional information, and trading decisions should not be based solely on this article. Please note that past performance is not indicative of future results.
#Kuaishou 01024 #Technical Analysis #Sudden Drop Alert #Oversold Rebound #Support Level Breached #Continuous Decline #Hong Kong Stock Technology #Investment Strategy #Risk Control #
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
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