SMIC shows technical signs of bottoming out, with a short-term challenge at the key level of 60.8 yuan

On the previous day (April 8th) $SMIC (00981.HK)$

Closed at HKD 56.15, surged 10.10% in a single day with a trading volume of HKD 6.719 billion, indicating active liquidity.

As of 10:25 AM today (April 9), SMIC's latest price was HKD 56.5, slightly up by 0.53%. Resistance 1 is at HKD 60.8, Resistance 2 at HKD 64.8; Support 2 is at HKD 47.5, Support 1 at HKD 52. The probability of an upward move is 56%, with a 5-day volatility of 13.9%. A significant short-term rebound momentum is observed.

SMIC’s RSI is 42, within the neutral range. Technical indicators summarize a buy signal with strength level 9. Multiple oscillation indicators are neutral. The stochastic oscillator suggests a buy signal, and the bull-bear power indicator points to 'severe oversold conditions, potential bottoming out, buy.' The MACD also signals a buy, while Bollinger Bands indicate a rebound trend. Overall, the technical outlook leans optimistic, with sufficient rebound momentum.

Review and Selection of Bull-Bear Warrants for SMIC:

(1) Review of previous products:

Looking back at the SMIC-related bull-bear warrant products recommended on March 30, their performance has been impressive: $HS#SMIC RC2610A.C (64148.HK)$ Gains reached 36% two days later, $UB#SMIC RC2609C.C (64942.HK)$ Gains reached 31% two days later, $CI-SMIC@EC2608A.C (17673.HK)$ rose 12%, $HS-SMIC@EC2608A.C (13200.HK)$ With gains of 11%, these products achieved solid leveraged returns following SMIC's rebound, aligning well with the sector’s rhythm.

(II) Selected Warrants for SMIC:

Considering SMIC’s surge, the sector’s rebound, and concentrated buy signals, we’ve selected two products tailored for different operational expectations, balancing rebound potential and risk for investors’ reference.

1、 $UB#SMIC RC2609C.C (64942.HK)$ Leverage of 4.7, strike price of 46; offers the highest actual leverage and lowest premium, suitable for investors optimistic about SMIC’s continued rebound.

2. SMIC call warrant (17673): Leverage of 3.7, strike price of 48.05, with the lowest premium and implied volatility; ideal for conservative investors focused on SMIC's rebound.

Risk Warning: Although the semiconductor sector rebounded strongly on April 8 with dense buy signals, individual stocks are still under pressure from medium-term moving averages. Warrants are highly volatile. Investors should assess their risk tolerance, rationally manage positions, and closely monitor key support/resistance levels and volume changes for SMIC and the sector.

SMIC surged yesterday. Can it break through the resistance at $60.8? A. Yes B. No.

Feel free to share your insights in the comments section.

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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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