CGN Power (01816) Short-term Analysis: Strong Breakout, Consolidation at Highs

As of March 24, 2026, CGN Power (01816) closed at 3.55 yuan, up 1.72%, with a turnover of 158 million yuan, indicating active market trading. From a technical perspective, the stock price has been advancing along an upward trend and hit a 52-week high yesterday (March 23), showing a clearly strong short-term upward pattern.

The short-term moving averages are arranged upwards, with MA10, MA30, and MA60 at 3.42 yuan, 3.25 yuan, and 3.17 yuan respectively, providing support for the stock price. Based on multiple technical indicators, the system’s signal is “Sell” with an intensity of 10; oscillation indicators like the CCI also indicate “Sell,” with warnings of “Top Divergence, Sell.” Meanwhile, the RSI is at 69, close to the overbought region of 70, reflecting continued capital inflow but increasing short-term pullback pressure. However, Bull-Bear Power, Ichimoku Cloud, and MACD signals all suggest “Buy,” and Bollinger Bands show “Buy,” indicating the uptrend continues. According to technical analysis, short-term support levels are at 3.34 yuan and 3.22 yuan, while resistance levels are at 3.65 yuan and 3.84 yuan. The probability of an increase is 51%, with a 5-day volatility of 10.5%, showing relatively high stock price fluctuations.

March 23rd [HK Stocks Podcast] Part 1 - Hang Seng Index, CGN Power, Leapmotor,

Integrating the views from the March 23 [HK Stocks Podcast], the program clearly stated that CGN Power’s stock price advanced along an upward trend and hit a 52-week high, showing a clearly strong short-term upward pattern. Initial support levels lie at 3.30 yuan and then 3.10 yuan, with psychological resistance at 4.00 yuan as the main target area. The program's analysis noted that for further upward movement, the stock needs to stabilize above 3.50 yuan and consistently close higher, supported by increasing volume, to push prices towards 3.70 or even 4.00 yuan. Currently, the stock price is at 3.53 yuan, already above 3.50 yuan, meeting the conditions mentioned in the program for continuing the uptrend. However, the program also reminded that it is now close to the upper Bollinger Band and RSI is in a relatively high zone, reducing the risk-reward ratio for short-term purchases. If the price fails to hold or retraces, it might consolidate gains first. In terms of market news, today (March 24) the overall performance of Hong Kong stocks was volatile, but electric power stocks generally benefited from expectations of rising electricity demand in mainland China. As the leading nuclear power company, CGN Power’s stock showed relative strength, moving against the market trend.

Reviewing the performance of the warrants market, according to the product review on March 20, the two call warrants mentioned recorded significant increases over the following two days (up to March 22), successfully capturing the upside of the underlying stock. Among them, BOC Call Warrant (23693) $BI-CGNP@EC2609A.C (23693.HK)$ recorded a 23% increase, performing notably; JPMorgan Call Warrant (26753) $JP-CGNP@EC2609A.C (26753.HK)$ also recorded a 19% increase. During the same period, the underlying stock rose by 3.22%, and the related call warrants fully demonstrated the leverage effect, providing investors with better returns from capturing the upward movement.

Based on technical analysis, market conditions, and insights from [Hong Kong Stock Podcast], CGN Power is in a strong short-term uptrend. The stock price has stabilized above the key level of HK$3.50 and is expected to further challenge resistance levels at HK$3.65 and HK$3.84. The medium-term target is the psychological level of HK$4.00. Investors who are optimistic about the market outlook may consider using call warrants for deployment. Below is an analysis of several warrant products with clear terms, whose exercise prices are closely related to technical resistance levels:

For bullish deployment, one may consider J.P. Morgan Call Warrant (26753) $JP-CGNP@EC2609A.C (26753.HK)$ and Bank of China Call Warrant (23693) $BI-CGNP@EC2609A.C (23693.HK)$ . Their exercise prices are HK$3.898 and HK$3.89, respectively, both close to the second resistance level of HK$3.84, making them slightly out-of-the-money structures. The advantage of J.P. Morgan Call Warrant (26753) lies in its relatively lower premium, offering a leverage of 5.6 times; Bank of China Call Warrant (23693) similarly stands out with a relatively lower premium and a leverage of 5.4 times. Both are suitable for investors expecting the share price to break through the HK$3.84 resistance and advance towards HK$4.00.

Additionally, UBS Group Call Warrant (23060) $UB-CGNP@EC2604A.C (23060.HK)$ can be considered. Its exercise price is HK$4.00, directly targeting the psychological level, with a leverage of 13.02 times and a premium of 14.66%. The street inventory is only 1.83%, making it a high-leverage and concentrated option. Another choice is BNP Paribas Call Warrant (22159) $BP-CGNP@EC2605A.C (22159.HK)$ , with an exercise price of HK$3.99, leverage of 10.35 times, a premium of 14.66%, and implied volatility of 49.32%. It is also suitable for investors anticipating that the stock price will challenge the HK$4.00 mark.

Overall, CGN Power is at a critical moment following a strong short-term uptrend. Investors should consider HK$3.34 as the short-term defensive level. If the stock price can stabilize above HK$3.50 and continue to trade with increased volume, it may further challenge resistance levels at HK$3.65 and HK$3.84. When selecting warrant products, investors should balance leverage and out-of-the-money levels based on their assessment of upward momentum and pay attention to potential pullback risks caused by overbought technical indicators.

Interactive Questions

Do you think CGN Power (01816) will break through the HK$3.65 resistance in the short term?

A. Yes, the uptrend is likely to continue towards a challenge of HKD 4.

B. No, technical overbought conditions require consolidation first.

Feel free to leave your thoughts in the comments section and follow Jenny's HK Stock Warrants for more professional insights.

Disclaimer: This article does not constitute any investment advice. It is for reference only and does not constitute any investment advice. Market data, opinions, and analyses contained herein may change at any time without prior notice. We are not responsible for any losses or damages caused by reliance on the information in this article. Technical analysis shows whether some technical conditions are met, but should be combined with other materials for comprehensive evaluation of asset performance. Trading decisions should not be based solely on this article. Note that past performance is not indicative of future results. Follow Jenny's HK Stock Warrants for more professional insights.

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