Geely Auto (00175) Short-term Analysis: Aggressive New Product Launches, Stock Price Strongly Challenges the HKD 19 Mark

Entering mid-March, the Hong Kong-listed automobile sector remained active, driven by a flurry of new product launches from new energy vehicle companies. As of the morning session on March 12, 2026, Geely Auto's (00175) share price continued its strong performance, closing at HKD 17.57, up approximately 1.04%, with active trading.

In market news, Zeekr, Geely Auto’s luxury-focused electric vehicle brand, announced that it will launch its second flagship SUV, the Zeekr 8X, next Monday (the 16th), accompanied by a technology conference to kick off pre-sales simultaneously. The Zeekr 8X will debut with the latest version of the Qianli Haohan G-ASD high-level assisted driving system and the world's first full-stack 900V high-voltage powertrain in the hybrid domain, achieving an overall range exceeding 1,000 kilometers when fully fueled and charged. It also supports 6C ultra-fast charging technology, positioning it as another premium hot model expected to succeed the Zeekr 9X. Additionally, Geely's Galaxy series will unveil its latest creation—the Galaxy M7—a home-oriented mid-range plug-in hybrid SUV, tomorrow (the 13th), with sales expected to commence in the first half of the year. Within the same sector, Guangzhou Automobile Group (02238) $GAC GROUP (02238.HK)$ Surging over 12%, Beijing Automotive (01958) $BAIC MOTOR (01958.HK)$ , BYD (01211) $BYD COMPANY (01211.HK)$ , Great Wall Motor (02333) $GWMOTOR (02333.HK)$ all posted gains, with the overall sentiment in the auto sector looking positive.

From a technical analysis perspective,based on technical data as of March 11, Geely Auto’s share price at 17.39 yuan has reclaimed the 10-day line (15.96 yuan), 30-day line (16.36 yuan), and 60-day line (16.79 yuan). The moving averages are showing a bullish alignment, reflecting strong short-term momentum. The Relative Strength Index (RSI) is at 51, in a neutral-to-strong region, not yet reaching overbought conditions, indicating potential for further upside.It’s worth noting that multiple indicators such as the Stochastic Oscillator and Bollinger Bands have issued buy signals, with the CCI indicator also showing a buy signal, supporting further upward movement in the stock price. However, the Momentum Oscillator is showing a bearish divergence sell signal. The total number of indicators signals 'sell' with strength at 8, but most oscillators remain neutral, suggesting possible short-term volatility.

In terms of support and resistance levels, the immediate key support is at 16 yuan, which is an important short-term defense line. If it breaks, it will need to test the critical support area at 15.7 yuan. Resistance is concentrated around 18.8 yuan and 19.1 yuan, with 18.8 yuan being the key target for a short-term breakout. Reviewing analyst Simon's view from the [Hong Kong Stock Podcast] on March 11, he noted that Geely's trading range over the past five sessions was 14.8%, with significantly higher trading volume. Technically, sell signals currently dominate (8 sell signals vs. 6 buy signals). Such stocks, which rise sharply in the short term, could see significant declines once the trend reverses, warranting caution in handling them. With the latest share price at 17.54 yuan, it is gradually approaching the 18.8 yuan resistance level. Short-term operations should consider following the trend but be mindful of the accumulated gains.

Reviewing the performance of warrant products, the two Geely Auto bull warrants mentioned on March 9 performed notably, effectively capturing the uptrend in the underlying stock. HSBC’s bull warrant (66250) $HS#GEELYRC2611A.C (66250.HK)$ recorded a 65% increase over the two days after being mentioned, during which the underlying stock rose by 9.99%; UBS Group’s bull warrant (64724) $UB#GEELYRC2707B.C (64724.HK)$ Recorded a 63% increase. Both significantly outperformed the underlying stock, fully demonstrating the leverage effect of bull certificates, reflecting that products with closer strike prices to the current price are more sensitive to fluctuations in the underlying stock.

In terms of deploying warrant and bull-bear certificate products, investors can choose from the following products based on their own risk preferences, in conjunction with the current support and resistance levels.

In terms of call warrants, BOC call warrant (25051) $BIGEELY@EC2609A.C (25051.HK)$ and HSBC call warrant (25084) $HSGEELY@EC2609A.C (25084.HK)$ have an exercise price of HKD 19.51, offering leverage of approximately 4.8 to 5 times. This exercise price is linked to the key resistance level above the current share price at HKD 19.1, making it suitable for investors who expect the share price to break through resistance and challenge the HKD 20 mark. The advantage of BOC call warrant (25051) lies in its relatively higher leverage, reaching 4.8 times; while HSBC call warrant (25084) has the lowest premium and implied volatility, providing stronger downside protection for valuation-sensitive investors. $UBGEELY@EP2606A.P (18457.HK)$ and BOC put warrant (18379) $BIGEELY@EP2606A.P (18379.HK)$ have an exercise price of HKD 14.73, providing leverage of approximately 6.6 times. This exercise price is linked to the key support levels below the current share price at HKD 16 and HKD 15.7, making it suitable for investors who expect the share price to be capped by resistance and retrace to test support. The advantages of both lie in their ideal leverage and implied volatility, which are highly attractive to investors seeking magnified effects.

In terms of bull certificates, HSBC bull certificate (66250) $HS#GEELYRC2611A.C (66250.HK)$ and UBS Group bull certificate (64724) have a stop-loss price of HKD 14, offering actual leverage of about 4.4 to 4.6 times. This stop-loss price is below the primary support level at HKD 16, providing ample buffer space, and is suitable for investors expecting the share price to stabilize at the HKD 16 support and further rebound. The advantage of HSBC bull certificate (66250) lies in its highest actual leverage and lower premium; while UBS Group bull certificate (64724) offers the lowest premium and relatively high actual leverage, each providing unique advantages for investors seeking amplified effects and cost control. Regarding bear certificates, UBS Group bear certificate (68071) has a stop-loss price of HKD 19, providing 8.1 times actual leverage, with the lowest premium. This stop-loss price is linked to the key resistance zone around HKD 18.8 and HKD 19.1, making it suitable for investors who expect the share price rebound to be capped by resistance. Its advantage lies in having the lowest premium and relatively high actual leverage, making it an efficient choice for bearish positioning.

In summary, investors optimistic about Geely Auto's further rebound can consider HSBC call warrant (25084) to capture breakout movements or UBS Group bull certificate (64724) for higher leverage deployment; those bearish may consider UBS Group put warrant (18457) to hedge downside risks or UBS Group bear certificate (68071) to capture pullback opportunities with the highest leverage.

Interactive Question:

Dear readers, do you think Geely Auto (00175), benefiting from a dense launch of new models, can successfully break through the resistance at HKD 18.8 in the short term?

A) Yes, the new product offensive is strong, and the uptrend is expected to continue.

B) No, consolidation within the range of HK$16 to HK$18.8 is needed first to digest recent gains.

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.

#Geely Auto #00175 #Hong Kong stocks #Technical analysis #Support and resistance levels #Derivatives #Bull and bear contracts #Call options #Put options #Auto sector

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