The auto sector surged collectively, with Geely Auto skyrocketing 8.34%, breaking through resistance levels at HKD 16.8 and HKD 17.4.

Entering mid-March, Hong Kong-listed auto sector stocks collectively surged, becoming the market's focus. As of the morning session on March 11, 2026, Geely Auto (00175) shares rose strongly along with the sector, last trading at HKD 17.37, up 8.09%. The intraday high reached HKD 7.69, with a turnover of HKD 1.655 billion. The active buy-to-sell ratio was 67:33, reflecting strong capital accumulation.

In terms of market news, the Hong Kong-listed auto sector saw broad gains this morning, with Nio (09866) $NIO-SW (09866.HK)$ rising over 15%, XPeng Motors (09868) $XPENG-W (09868.HK)$ climbing more than 4%, while Leapmotor (09863) $LEAPMOTOR (09863.HK)$ , GAC Group (02238) $GAC GROUP (02238.HK)$ , and Seres (09927) $SERES (09927.HK)$ all gaining over 3%. In short selling data, the short-selling ratio for Geely Auto-R (80175) yesterday reached 89.81%, ranking among the highest in the market, indicating significant divergence between bulls and bears.

From a technical analysis perspective, based on data as of March 10, Geely Auto’s share price at HKD 16.07 has reclaimed the 10-day moving average (HKD 15.88), but remains constrained by the 30-day line (HKD 16.34) and the 60-day line (HKD 16.79). The Relative Strength Index (RSI) stands at 49, in the neutral zone, not yet reaching overbought or oversold levels, implying potential upside in the short term. The aggregate indicator signals a 'buy,' with strength at 7, suggesting expectations of a short-term rebound are rising.

Regarding support and resistance levels, the immediate key support is at HKD 15.5, an important short-term defense line. A breach would test the critical support area at HKD 14.7. Above, resistance clusters at HKD 16.8 and HKD 17.4, with HKD 16.8 close to the 30-day moving average, serving as a pivotal short-term breakout target. It is worth noting whether the sector's rally can sustain; if the auto sector continues its strength, it will provide further upward momentum for Geely. Given the latest share price of HKD 17.37, it has broken through the HKD 16.8 resistance level, with the next target challenging HKD 17.4. Short-term operations should follow the trend.

Reviewing the performance of warrant products, the UBS bull certificate (64274) we mentioned on March 5 $UB#GEELYRC2707A.C (64274.HK)$ The subsequent two-day increase reached 23%, while the underlying stock rose by 4.29%. The increase was significantly higher than the underlying stock, fully demonstrating the leverage effect of bull certificates and reflecting that products with a recovery price closer to the current price are more sensitive to fluctuations in the underlying stock.

In terms of deploying callable bull/bear contracts (CBBC), combining current support and resistance levels, investors can choose from the following products based on their own risk appetite.

For put warrants, UBS Group put warrant (26033) $UBGEELY@EP2607A.P (26033.HK)$ has an exercise price of HK$13.7, providing approximately 5.3x leverage; Citi put warrant (24024) has an exercise price of HK$13.71, offering about 5.5x leverage. This exercise price is linked to the key support levels below the current share price at HK$15.5 and HK$14.7, making it suitable for investors who expect the share price to be constrained by resistance levels and retreat to test support. The advantage of UBS Group put warrant (26033) lies in its highest leverage and low implied volatility, which makes it more attractive for investors seeking amplified effects; whereas Citi put warrant (24024) offers relatively ideal leverage and implied volatility, presenting stronger defensiveness for valuation-sensitive investors.

For bull certificates, UBS Group bull certificate (64724) and HSBC bull certificate (66250) $HS#GEELYRC2611A.C (66250.HK)$ have a recovery price of HK$14, providing approximately 6.0x to 6.2x effective leverage. This recovery price is lower than the primary support level at HK$15.5, offering sufficient buffer space, making it suitable for investors who expect the share price to stabilize at the HK$15.5 support level and rebound further. The advantage of UBS Group bull certificate (64724) lies in its lowest premium and higher effective leverage, reaching 6.2x; while HSBC bull certificate (66250) offers the highest effective leverage, reaching 6.0x with a lower premium, making it equally attractive for investors seeking amplified effects.

For bear certificates, UBS Group bear certificate (68071) $UB#GEELYRP2612E.P (68071.HK)$ has a recovery price of HK$19, providing 4.8x effective leverage. This recovery price is linked to the key resistance level above the current share price at HK$17.4, making it suitable for investors who expect the share price rebound to be constrained by resistance levels. The advantage of UBS Group bear certificate (68071) $UB#GEELYRP2612E.P (68071.HK)$ is its highest effective leverage, making it a choice for those pursuing amplified effects in bearish strategies.

Overall, investors optimistic about Geely Auto's rebound may consider HSBC bull certificate (66250) for higher leverage deployment; while those bearish may consider Citi put warrant (24024) to hedge downside risks or UBS Group bear certificate (68071) to capture pullback opportunities.

Interactive Questions:

Dear readers, Geely Auto (00175) is benefiting from the sector's strong performance. Do you think it can successfully hold above 17.4 in the short term?

A) Yes, with strong sector support, it could challenge higher levels.

B) No, it needs to consolidate around 16.8 first to digest recent gains.

Feel free to share your thoughts in the comments section!

Reminder: 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 combine other data and should not solely rely on this article to make trading decisions. Please note that past performance is not indicative of future results. Follow Jenny's insights on Hong Kong stock warrants for more professional analysis.

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