English
Back
Open Account
Three major optical communication stocks have doubled this year. Will the momentum continue?
港股窩輪Jenny
joined discussion · Apr 9 11:28

ZTE Corporation (00763.HK) Short-term Analysis: Sector Strength Drives Rebound; Resistance at HKD 24.9 Becomes Key Short-term Level

ZTE Corporation (00763.HK) has recently seen its share price strengthen in line with the broader telecommunications equipment sector. Following a significant rise on April 8, the rebound continued. As of the morning session on April 9, 2026, ZTE was trading at HKD 23.88, up approximately 2.7% from the closing price of HKD 23.4 on April 8. The intraday high reached HKD 24.48, with a trading volume of HKD 322 million. The stock rebounded from near HKD 22 on April 7, showing short-term improvement, but remains constrained by several medium-term moving averages.
Technical Analysis
From a technical chart perspective, ZTE Corporation’s share price has been in a downward channel since late March, rebounding after hitting around HKD 22 on April 7. On April 8, it surged 6.07% in a single day, breaking through the HKD 23 level. According to technical data as of April 8, ZTE's first support is around HKD 22, which represents the recent low point of the pullback. A more critical second support lies at HKD 20.9, equivalent to the long-term support zone since the beginning of the year. In terms of resistance, the first key level is at HKD 24.9, and if broken, the next target would be HKD 25.9, corresponding to the February high area.
In terms of technical indicators, the overall signal suggests 'Sell,' with a total of 8 sell signals. The RSI stands at 41, near the edge of the weak region. Multiple oscillators show neutral signals, but both the Williams %R and Stochastic Oscillator are issuing neutral signals, while the CCI indicator points to a sell. Meanwhile, the Rate of Change (ROC) indicator shows a 'Severely Oversold, Potential Bottom Forming, Buy' signal. The Bull/Bear Power indicator shows a buy signal, though MACD and Bollinger Bands suggest selling, confirming that the medium-term downtrend has not yet fully reversed. Overall, the current technical signals indicate an 'oversold rebound' pattern, with the stock likely to trade within a range of HKD 22 to HKD 24.9 in the short term, but pressure from the HKD 24.9 resistance level should be closely monitored.
ZTE Corporation (00763.HK) has recently seen its share price strengthen in line with the broader telecommunications equipment sector. Following a significant rise on April 8, the rebound continued. As of the morning session on April 9, 2026, ZTE was trading at HKD 23.88, up approximately 2.7% from the closing price of HKD 23.4 on April 8. The intraday high reached HKD 24.48, with a trading volume of HKD 322 million. The stock rebounded from near HKD 22 on April 7, showing short-term improvement, but remains constrained by several medium-term moving averages. Technical Analysis From a technical chart perspective, ZTE Corporation’s share price has been in a downward channel since late March, rebounding after hitting around HKD 22 on April 7. On April 8, it surged 6.07% in a single day, breaking through the HKD 23 level. According to technical data as of April 8, ZTE's first support is around HKD 22, which represents the recent low point of the pullback. A more critical second support lies at HKD 20.9, equivalent to the long-term support zone since the beginning of the year. In terms of resistance, the first key level is at HKD 24.9, and if broken, the next target would be HKD 25.9, corresponding to the February high area. In terms of technical indicators, the overall signal suggests 'Sell,' with a total of 8 sell signals. The RSI stands at 41, near the edge of the weak region. Multiple oscillators show neutral signals, but both the Williams %R and Stochastic Oscillator are issuing neutral signals, while the CCI indicator points to a sell. Meanwhile, the Rate of Change (ROC) indicator shows a 'Severely Oversold, Potential Bottom Forming, Buy' signal. The Bull/Bear Power indicator shows a buy signal, though MACD and Bollinger Bands suggest selling, confirming that the medium-term downtrend has not yet fully reversed. Overall, the current technical signals indicate an 'oversold rebound' pattern, with the stock likely to trade within a range of HKD 22 to HKD 24.9 in the short term, but pressure from the HKD 24.9 resistance level should be closely monitored.
Market News and Sector Performance
On the news front, ZTE Corporation has experienced mixed positive and negative factors recently. UBS Group issued a research report on April 8, noting that the company’s revenue for last year increased by 10.4% year-on-year to RMB 133.9 billion, while gross profit fell 11.9% year-on-year to RMB 40.5 billion. Net profit reached RMB 5.6 billion, below expectations. The firm lowered its 2026-2028 operator revenue forecast by 8-9%, and consumer revenue forecasts by 7-10%, primarily due to weak customer demand. It also cut its net profit forecast by 18-34%, reducing the target price from HKD 37.7 to HKD 24.5, maintaining a 'Neutral' rating. Bank of America Securities also lowered its H-share target price from HKD 20 to HKD 19 in late March, reiterating a 'Neutral' rating, suggesting that the 5G upcycle has passed and sales will remain under pressure. However, the company is accelerating AI infrastructure deployment, focusing on boosting the revenue share of computing power businesses (such as servers and storage) in 2026, deepening the commercialization of 5G-Advanced technology, and expanding into emerging scenarios such as low-altitude economy.
In the same sector, the performance of Hong Kong's technology hardware and telecommunications equipment sector was extremely prominent on April 8, becoming the strongest direction in the market. TianShu Zhixin surged by 29.48% during the session, Huizhu Technology rose by 18.47%, and Nanfang Communications saw a short-term increase of over 24%. The sector as a whole received substantial capital inflows driven by leading stocks, reflecting investors' continued optimism towards the technology and telecommunications-related industries. Market expectations for domestic AI companies and the optical communications industry chain have risen. The optical communications sector also performed strongly, with Changfei Fiber Optic Cable gaining 15.56%. Continuous capital inflows suggest that the recovery in demand across the supply chain is considered a catalyst for the sector’s strength. As of the morning session on April 9, China Tower (00788) traded at approximately HK$10.82, showing stable movement, with positive sentiment across the board.
Warrant product recommendations and comparisons
Currently, ZTE Corporation's stock price is at the HK$24.04 level. Considering support levels at HK$22 and HK$20.9, and resistance levels at HK$24.9 and HK$25.9, investors can choose appropriate products based on their own views.
For bullish deployment, investors may consider four call warrant products issued by J.P. Morgan, Macquarie, Bank of China, and Huatai. On April 8, ZTE closed at approximately HK$23.4, surging 5.26% in a single day with both volume and price rising. Technically, it shows a bullish breakout trend with strong short-term momentum. All four products offer high effective leverage, with Huatai’s 27203 warrants rising by 14.62%, outperforming its peers and precisely capturing upward stock price elasticity. The exercise prices of all four products are above the current stock price, with similar in-the-money levels, reasonable street ratios, and implied volatility ranging between 65 to 69. These products are suitable for investors optimistic about ZTE breaking through the HK$24.9 resistance level and maintaining strong momentum, allowing them to select corresponding leverage based on their risk preferences.
Selected Bullish Products:
- Huatai Call Warrant (27203) $HU-ZTE @EC2609B.C (27203.HK)$ : Surged by 14.62% in a single day, performing exceptionally well among its peers, effectively capturing upward stock price elasticity, suitable for aggressive investors seeking short-term breakout opportunities.
- J.P. Morgan Call Warrant (27008) $JP-ZTE @EC2609A.C (27008.HK)$ : Issuer has a strong reputation, offering high effective leverage, suitable for investors who prefer J.P. Morgan’s brand.
For bearish strategies, there are currently no put warrants or bear contracts related to ZTE available in the market. Investors who are bearish may consider using index derivatives or wait for relevant products to be listed.
ZTE Corporation (00763.HK) has recently seen its share price strengthen in line with the broader telecommunications equipment sector. Following a significant rise on April 8, the rebound continued. As of the morning session on April 9, 2026, ZTE was trading at HKD 23.88, up approximately 2.7% from the closing price of HKD 23.4 on April 8. The intraday high reached HKD 24.48, with a trading volume of HKD 322 million. The stock rebounded from near HKD 22 on April 7, showing short-term improvement, but remains constrained by several medium-term moving averages. Technical Analysis From a technical chart perspective, ZTE Corporation’s share price has been in a downward channel since late March, rebounding after hitting around HKD 22 on April 7. On April 8, it surged 6.07% in a single day, breaking through the HKD 23 level. According to technical data as of April 8, ZTE's first support is around HKD 22, which represents the recent low point of the pullback. A more critical second support lies at HKD 20.9, equivalent to the long-term support zone since the beginning of the year. In terms of resistance, the first key level is at HKD 24.9, and if broken, the next target would be HKD 25.9, corresponding to the February high area. In terms of technical indicators, the overall signal suggests 'Sell,' with a total of 8 sell signals. The RSI stands at 41, near the edge of the weak region. Multiple oscillators show neutral signals, but both the Williams %R and Stochastic Oscillator are issuing neutral signals, while the CCI indicator points to a sell. Meanwhile, the Rate of Change (ROC) indicator shows a 'Severely Oversold, Potential Bottom Forming, Buy' signal. The Bull/Bear Power indicator shows a buy signal, though MACD and Bollinger Bands suggest selling, confirming that the medium-term downtrend has not yet fully reversed. Overall, the current technical signals indicate an 'oversold rebound' pattern, with the stock likely to trade within a range of HKD 22 to HKD 24.9 in the short term, but pressure from the HKD 24.9 resistance level should be closely monitored.
Overall, ZTE's stock price is currently in an oversold rebound phase, successfully reclaiming the HK$24 level, while the HK$24.9 resistance will determine the short-term direction. Fundamentally, target price downgrades from UBS Group and Bank of America bring pressure, but the company’s transformation into computational power business and deployment of AI infrastructure provide long-term growth potential. Strong sector performance also provides support. Investors should strictly manage risks and select appropriate call warrant products based on key support levels at HK$22 and HK$20.9, and resistance levels at HK$24.9 and HK$25.9.
Interactive Q&A:
Do readers think that ZTE Corporation (00763) can break through the resistance at 24.9 yuan in the short term?
A) Yes, benefiting from sector strength and transformation in computing power business, further testing 25.9 yuan
B) No, the resistance at 24.9 yuan is heavy, requiring a retest of the support level at 22 yuan
C) Repeated fluctuations within the range of 23 yuan to 24.9 yuan
Feel free to share your thoughts in the comment section!
When choosing call warrants, Huatai 27203 shows outstanding gains, while J.P. Morgan 27008 has a reputable issuer. Which one would you prioritize? Feel free to share your experience!
Friendly 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.
$Hang Seng Index (800000.HK)$$Hang Seng TECH Index (800700.HK)$
#ZTE Corporation# #Hong Kong Stocks# #Technical Analysis# #Support and Resistance Levels# #Warrants# #Call Warrants# #Telecom Equipment# #AI Computing Power# #Hong Kong Warrants with Jenny#
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
Thumbs Up
1
220K Views
Report
Comments
Write a Comment...
1