Meituan's earnings report is finally out! Are tech stocks still worth buying?
Meituan is trading close to the upper Bollinger Band, and volatility may increase ahead of earnings.
On the previous day (March 25th) $MEITUAN-W (03690.HK)$
Closing at HKD 90 for the day, a significant surge of 13.92% in a single day with a turnover of HKD 21.967 billion, making it the best-performing stock among internet platform stocks; however, technical indicators suggest a clear warning of an impending correction.
We 【Hong Kong Stock Report】March 25th [HK Stocks Podcast] Part 1 - Hang Seng Index, Meituan, Nongfu Spring,Commentary on Meituan: Currently trading at HKD 90, forming a noticeable rebound range between HKD 73.60 and HKD 91.70 in the short term, with overall volatility around 24.6%. If considering only short-term positioning around earnings, the nearest support zone would be between HKD 85 and HKD 86, close to the pullback area after recent breakouts. Below that is around HKD 80, and if that fails, focus on the region between HKD 78.66 and HKD 78. Above resistance, first is the recent high at HKD 91.70; if it breaks through, the next level to watch is near HKD 95 due to its proximity to medium-term moving average pressure. The current price has moved into the upper part of the recent range, indicating that the short-term play is no longer about buying rebounds from lows but transitioning into a phase of heightened volatility at higher levels. $Hang Seng Index (800000.HK)$$NONGFU SPRING (09633.HK)$
Combining the latest technical data to further dissect the details of Meituan's trend:
1. Support and Resistance: Support 2 at HKD 78.9, Support 1 at HKD 80.1, Resistance 1 at HKD 101, Resistance 2 at HKD 101.1; short-term core focus on the strength of support between HKD 85 and HKD 86, as well as resistance at the recent high of HKD 91.70. These two levels are key for short-term operations ahead of earnings.
2. Core technical indicators: RSI is at 46, in the neutral zone, with multiple oscillation indicators showing neutral signals. The RSI indicator shows neutrality, Williams %R suggests overbought status and a neutral signal, the stochastic oscillator indicates overbought conditions and a sell signal, the bull/bear power indicator is neutral, MACD suggests buying, Bollinger Bands suggest buying, overall indicators show a moderately strong but hidden overbought pressure.
3. Comprehensive signals: The summary of technical indicators is 'neutral,' with signal strength at 8, an upward probability of 46%, slightly below 50%. The 5-day volatility is 17.4%, indicating significant fluctuations corresponding to its 13.92% single-day surge, suggesting short-term profit-taking pressure is emerging.
![On the previous day (March 25th) $MEITUAN-W (03690.HK)$ Closing at HKD 90 for the day, a significant surge of 13.92% in a single day with a turnover of HKD 21.967 billion, making it the best-performing stock among internet platform stocks; however, technical indicators suggest a clear warning of an impending correction. We 【Hong Kong Stock Report】[Share Link: March 25th [HK Stocks Podcast] Part 1 - Hang Seng Index, Meituan, Nongfu Spring,]Commentary on Meituan: Currently trading at HKD 90, forming a noticeable rebound range between HKD 73.60 and HKD 91.70 in the short term, with overall volatility around 24.6%. If considering only short-term positioning around earnings, the nearest support zone would be between HKD 85 and HKD 86, close to the pullback area after recent breakouts. Below that is around HKD 80, and if that fails, focus on the region between HKD 78.66 and HKD 78. Above resistance, first is the recent high at HKD 91.70; if it breaks through, the next level to watch is near HKD 95 due to its proximity to medium-term moving average pressure. The current price has moved into the upper part of the recent range, indicating that the short-term play is no longer about buying rebounds from lows but transitioning into a phase of heightened volatility at higher levels. $Hang Seng Index (800000.HK)$$NONGFU SPRING (09633.HK)$ Combining the latest technical data to further dissect the details of Meituan's trend: 1. Support and Resistance: Support 2 at HKD 78.9, Support 1 at HKD 80.1, Resistance 1 at HKD 101, Resistance 2 at HKD 101.1; short-term focus on the strength of support between HKD 85 and HKD 86...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260326/web-1774491685431-lwrx07bCy4.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
Technically, short-term moving averages are starting to strengthen and converge, showing an improvement process from previous entanglement, but the medium- to long-term moving averages remain at higher levels, indicating that the current phase is still about challenging upper resistance after a sharp rebound, rather than transitioning into a major uptrend. The Relative Strength Index (RSI) is notably strong and at a high level, reflecting strong buying power but also suggesting some overheating in the short term. The Bollinger Bands are beginning to widen, with the price running close to the upper band, typically signaling increased volatility. Especially around earnings, there may be quick retracements after large bullish candles or situations where prices gap up but close lower.
II. Technical Review of Internet Platform Stocks: Increasing Divergence, Significant Strength and Weakness Differences
On March 25, major internet platform stocks showed clear divergence. Meituan, JD.com, and Alibaba led gains, while Tencent, Kuaishou, and Bilibili saw minor declines or small increases. Technical signals also highlighted key differences, as detailed below:
1. Strong Buy Signal Stocks (2 stocks):
$KUAISHOU-W (01024.HK)$ Closed at HKD 53.05, up 0.47%. Closing price was below MA10 (HKD 56.49), MA30 (HKD 62.03), and MA60 (HKD 68.575). RSI 28 entered oversold territory, with a strong buy signal intensity of 14, making it the strongest bullish signal of the day with very strong rebound momentum.
$BABA-W (09988.HK)$ Closed at HKD 128.9, surging 4.63%. Closing price was below MA10 (HKD 129.79) and MA30 (HKD 139.34), but above MA60 (HKD 148.74). RSI 37 approached oversold levels, with a strong buy signal intensity of 12, indicating sufficient rebound momentum.
2. Buy Signal Stocks (3 stocks):
$TENCENT (00700.HK)$ Closed at 505.5 yuan, down 1.65%, with the closing price below all major moving averages. RSI 38 is near oversold territory, with a buy signal strength of 9.
$JD-SW (09618.HK)$ Closed at HKD 112.4, rising 4.85%. Closing price was above MA10 (HKD 109.95), MA30 (HKD 106.89), and MA60 (HKD 110.0475). RSI 52 is neutral, with a buy signal intensity of 7. Moving average signals suggest strong selling; caution is advised regarding profit-taking.
$BILIBILI-W (09626.HK)$ Closed at HKD 186.2, down 0.59%. Closing price was below all key moving averages, with RSI 37 approaching oversold territory and a buy signal intensity of 8.
Overall market sentiment: Meituan's rise yesterday boosted short-term interest in internet platform stocks, but amid divergent trends, investor attitudes have become more rational. Some investors locked in profits from Meituan’s surge, while others focused on rebound opportunities for oversold stocks like Kuaishou and Alibaba, leading to a mix of观望 (wait-and-see) and positioning sentiment.
Review and Selection of Meituan Warrants and Bull/Bear Products: Rational Deployment of Leverage Opportunities Amid High Volatility
(1) Review of previous warrant and bull/bear products
Reviewing the Meituan-related warrant and bull/bear products recommended on March 23, their performance was extremely impressive: $UB#MTUANRC2701A.C (60462.HK)$ A 207% increase in two days, $JP#MTUANRC2609G.C (63797.HK)$ A 201% increase, $CTMTUAN@EC2608B.C (26323.HK)$ A 140% increase, $BIMTUAN@EC2609A.C (26182.HK)$ An 112% increase, all significantly outperforming Meituan's gain of 17.57% during the same period, capturing substantial leverage returns for investors focused on derivatives.
![On the previous day (March 25th) $MEITUAN-W (03690.HK)$ Closing at HKD 90 for the day, a significant surge of 13.92% in a single day with a turnover of HKD 21.967 billion, making it the best-performing stock among internet platform stocks; however, technical indicators suggest a clear warning of an impending correction. We 【Hong Kong Stock Report】[Share Link: March 25th [HK Stocks Podcast] Part 1 - Hang Seng Index, Meituan, Nongfu Spring,]Commentary on Meituan: Currently trading at HKD 90, forming a noticeable rebound range between HKD 73.60 and HKD 91.70 in the short term, with overall volatility around 24.6%. If considering only short-term positioning around earnings, the nearest support zone would be between HKD 85 and HKD 86, close to the pullback area after recent breakouts. Below that is around HKD 80, and if that fails, focus on the region between HKD 78.66 and HKD 78. Above resistance, first is the recent high at HKD 91.70; if it breaks through, the next level to watch is near HKD 95 due to its proximity to medium-term moving average pressure. The current price has moved into the upper part of the recent range, indicating that the short-term play is no longer about buying rebounds from lows but transitioning into a phase of heightened volatility at higher levels. $Hang Seng Index (800000.HK)$$NONGFU SPRING (09633.HK)$ Combining the latest technical data to further dissect the details of Meituan's trend: 1. Support and Resistance: Support 2 at HKD 78.9, Support 1 at HKD 80.1, Resistance 1 at HKD 101, Resistance 2 at HKD 101.1; short-term focus on the strength of support between HKD 85 and HKD 86...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260326/web-1774491962084-UWRDDYNSOZ.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
(II) Selection of Meituan Warrants
Incorporating Meituan’s strong rally, neutral overbought warnings, and high volatility ahead of earnings, two warrant products have been carefully selected to align with different trading expectations, catering to the market rhythm of the day for investor reference:
1. UBS Group Bull Certificate (60462): Actual leverage of 4.2, recovery price at HKD 72.6; its core advantages include the highest actual leverage and lower premium, suitable for investors optimistic about Meituan breaking through the resistance level of HKD 91.70 and continuing the rebound.
2、 $BIMTUAN@EP2612A.P (15409.HK)$ Actual leverage of 3.5, strike price at HKD 77.88, with the lowest implied volatility and high leverage, suitable for investors expecting a short-term pullback in Meituan while focusing on support levels between HKD 85 and HKD 86.
![On the previous day (March 25th) $MEITUAN-W (03690.HK)$ Closing at HKD 90 for the day, a significant surge of 13.92% in a single day with a turnover of HKD 21.967 billion, making it the best-performing stock among internet platform stocks; however, technical indicators suggest a clear warning of an impending correction. We 【Hong Kong Stock Report】[Share Link: March 25th [HK Stocks Podcast] Part 1 - Hang Seng Index, Meituan, Nongfu Spring,]Commentary on Meituan: Currently trading at HKD 90, forming a noticeable rebound range between HKD 73.60 and HKD 91.70 in the short term, with overall volatility around 24.6%. If considering only short-term positioning around earnings, the nearest support zone would be between HKD 85 and HKD 86, close to the pullback area after recent breakouts. Below that is around HKD 80, and if that fails, focus on the region between HKD 78.66 and HKD 78. Above resistance, first is the recent high at HKD 91.70; if it breaks through, the next level to watch is near HKD 95 due to its proximity to medium-term moving average pressure. The current price has moved into the upper part of the recent range, indicating that the short-term play is no longer about buying rebounds from lows but transitioning into a phase of heightened volatility at higher levels. $Hang Seng Index (800000.HK)$$NONGFU SPRING (09633.HK)$ Combining the latest technical data to further dissect the details of Meituan's trend: 1. Support and Resistance: Support 2 at HKD 78.9, Support 1 at HKD 80.1, Resistance 1 at HKD 101, Resistance 2 at HKD 101.1; short-term focus on the strength of support between HKD 85 and HKD 86...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260326/web-1774491984132-JANNYpHfcD.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
![On the previous day (March 25th) $MEITUAN-W (03690.HK)$ Closing at HKD 90 for the day, a significant surge of 13.92% in a single day with a turnover of HKD 21.967 billion, making it the best-performing stock among internet platform stocks; however, technical indicators suggest a clear warning of an impending correction. We 【Hong Kong Stock Report】[Share Link: March 25th [HK Stocks Podcast] Part 1 - Hang Seng Index, Meituan, Nongfu Spring,]Commentary on Meituan: Currently trading at HKD 90, forming a noticeable rebound range between HKD 73.60 and HKD 91.70 in the short term, with overall volatility around 24.6%. If considering only short-term positioning around earnings, the nearest support zone would be between HKD 85 and HKD 86, close to the pullback area after recent breakouts. Below that is around HKD 80, and if that fails, focus on the region between HKD 78.66 and HKD 78. Above resistance, first is the recent high at HKD 91.70; if it breaks through, the next level to watch is near HKD 95 due to its proximity to medium-term moving average pressure. The current price has moved into the upper part of the recent range, indicating that the short-term play is no longer about buying rebounds from lows but transitioning into a phase of heightened volatility at higher levels. $Hang Seng Index (800000.HK)$$NONGFU SPRING (09633.HK)$ Combining the latest technical data to further dissect the details of Meituan's trend: 1. Support and Resistance: Support 2 at HKD 78.9, Support 1 at HKD 80.1, Resistance 1 at HKD 101, Resistance 2 at HKD 101.1; short-term focus on the strength of support between HKD 85 and HKD 86...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260326/web-1774491984131-vRs6Bnc54M.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
Friendly reminder: Meituan is currently in a phase of high volatility, which may further intensify around earnings. Investors participating in CBBCs and bull/bear certificates should assess their own risk tolerance, rationally manage positions, and closely monitor Meituan's support/resistance levels and earnings-related developments.
What do you think the market will do when Meituan reports earnings tonight?
A. Soars by 15%+.
B. Pulls back by 10%+.
C. Opens higher but closes lower.
D. Ends flat.
Feel free to share your insights in the comment section. For more market analysis, please continue following ‘Hong Kong Stock Warrants Jenny’ for daily updates!
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 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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