Hua Hong Semiconductor’s rebound continues, but until it breaks through the 95 to 96 yuan range, it cannot be considered fully strong.

What is most noteworthy at the moment is not the single-day gain or loss, but whether the stock price, after rebounding from the low of 77.4 yuan, can continue to recover near 92 yuan and further reclaim the 93 to 95 yuan range, which is the market's most sensitive resistance zone.

The latest daily chart shows that Huahong closed at 92 yuan on April 10th, with a high of 95 yuan and a low of 91.6 yuan for the day. The stock price has significantly rebounded from its recent lows, and the 5-day, 10-day, and 20-day moving averages are starting to converge upwards, indicating an improvement in the short-term structure. However, to further confirm a strengthening trend, it remains crucial to see if the 93 to 95 yuan range can transition from being a rebound target to a truly stable platform.

From a technical standpoint, the near-term support levels can first be seen at 90 to 89 yuan, and further down at 87 to 85 yuan. As for resistance levels, first look at 93 to 95 yuan; if there's an effective breakout and stabilization, then the next target would be 96 to 98 yuan, after which the market focus will shift back towards the 100-yuan mark. Therefore, Hua Hong’s current trend appears to be in a critical validation period following its rebound from lower levels. In other words, the direction may not be poor, but the real upward potential still needs to prove itself through price action.

Judging from investor comments, the market’s concerns are very concentrated. The first focal point is clearly whether the 93 to 95 yuan range can hold steady. For example,@智慧的山地 @32079025、@233254365Comments like these are obviously centered around questions such as, 'Is there hope if I buy at 93?', 'Can 95 go higher?', or 'Can this rally reach 98?' This mindset is reasonable because for Hua Hong, the 93 to 95 yuan range is not just a short-term price level but also the dividing line where the market transitions from testing highs to confirming a breakthrough. If it only spikes to 95 yuan and retreats, the market will naturally worry that it’s just a short-term speculative play driven by sector momentum. But if it stabilizes, the subsequent targets—96, 98, or even 100 yuan—will become much more feasible.

The second focus is that, despite Huahong clearly benefiting from the semiconductor sector's热度, the market still heavily criticizes it for underperforming SMIC. Comments like @kllawcarol、@30861929These kinds of comments reflect the underlying sentiment—not that Huahong is entirely bad—but rather that its performance isn't standing out enough given the strength of the sector. This comparative mindset is crucial because the market no longer evaluates Huahong on its own, but within the context of the entire wafer foundry and semiconductor sector. When SMIC performs more impressively, even if Huahong rises, it can easily be criticized for 'not rising enough' or 'lagging behind.' This indicates that Huahong's current challenge isn't just about price, but also about perceptions of relative strength.

However, this recent rebound in Huahong isn't entirely without fundamental support. Daiwa raising its target price, an upward cycle in average selling prices, expectations of asset injections, improvements in the semiconductor sector, and export and capital inflow news are all helping to build a mid-to-short-term narrative. The issue lies in the fact that having a story doesn’t mean the market will unconditionally chase prices. When the stock price reaches critical levels like 93 to 95 yuan, the market naturally asks: Has the news already been fully priced in, or is there still room for further upside?

In summary, Huahong Semiconductor’s biggest issue at present isn’t whether it will rebound or whether there is positive news, but whether the range between 93 and 95 yuan can transition from being a testing zone to a confirmed breakout zone. Huahong isn’t directionless—it has entered a key validation phase. Only by stabilizing above 95 yuan will the market start looking towards 98 yuan or even 100 yuan; until then, it should still be viewed as a semiconductor stock with high divergence in its rebound, rather than a strong leader with a fully unlocked upward trajectory.

Based on the above situation, the deployment can be divided into three main strategies:

Strategy One: If the price stabilizes above 93 yuan and breaks through 95 to 96 yuan, consider following the trend with call options

If the stock price stabilizes first at 93 yuan and then breaks through 95 to 96 yuan, it suggests that the current recovery rally could evolve from a technical rebound into a more sustained upward movement. In this scenario, deploying call options aligns well with the principle of following the trend, as market attention shifts from recovery from the lows to continued momentum after breaking through resistance levels.

$UBHUAHO@EC2608A.C (24990.HK)$ ｜Strike Price 140.09｜Actual Leverage 4.2x｜Higher strike price, suitable for a more stable rebound play after confirming a breakout above 95 to 96.

$GJHUAHO@EC2604A.C (23085.HK)$ ｜Strike Price 96.13｜Actual Leverage 12.7x｜Strike price near key resistance, higher leverage, suitable for an aggressive short-term call position after confirmation of a breakout.

$SGHUAHO@EC2605B.C (21855.HK)$ ｜Strike Price 99.95｜Actual Leverage 6.8x｜Balanced leverage and strike price, ideal for capturing a more complete rebound after a confirmed breakout.

Strategy Two: If the price holds steady near 90 yuan after a pullback, use more balanced call warrants to bet on a continued rebound.

If the stock price remains stable near 90 yuan after a pullback, it indicates that the current rebound structure remains intact. The market may still consolidate at the support level before challenging resistance levels again. In this scenario, deploying call warrants with more balanced terms is suitable; the focus isn't on chasing higher prices but confirming the strength of the support zone and betting on a sustained rebound.

$UBHUAHO@EC2604A.C (16670.HK)$ ｜Strike Price 42.55｜Actual Leverage 1.7x｜Lower leverage, suitable for a more conservative call position if the price holds steady around 90 after a pullback.

$BPHUAHO@EC2607A.C (23421.HK)$ ｜Strike Price 90.00｜Actual Leverage 4.2x｜Strike price near current support, suitable for a balanced rebound play after holding above 90.

$CTHUAHO@EC2608A.C (22908.HK)$ ｜Strike Price 88.93｜Actual Leverage 3.3x｜Balanced terms, suitable for betting on continued rebound once the support level proves effective.

Strategy Three: If the price breaks below 90 yuan and then falls below 88.50 yuan, switch to put warrants.

If the stock price breaks below 90 yuan and then falls below 88.50 yuan, it indicates that the rebound from recent lows may have been disrupted, and the short-term trend could shift from recovery to weakness again. In this case, deploying put warrants aligns better with the prevailing structure, as the market focus shifts from defending support to following downside momentum after breaking below key levels.

$CIHUAHO@EP2607A.P (25339.HK)$ ｜Strike Price 79.95｜Actual Leverage 3.6x｜Suitable for a more balanced bearish position if the price breaks below 90 and then falls further below 88.50.

$HSHUAHO@EP2611A.P (25502.HK)$ ｜Strike Price 89.95｜Actual Leverage 1.8x｜Strike price near weakening zone, suitable as a more stable put option after losing support.

$MSHUAHO@EP2607A.P (25270.HK)$ ｜Strike Price 79.99｜Actual Leverage 3.8x｜Slightly higher leverage, suitable for a direct short-term put position after multiple support levels fail.

Key Deployment

In summary, Huahong Semiconductor is still in the stage of rebound recovery. Until it breaks through 95 to 96 yuan, it cannot be considered completely strong. The deployment can be divided into three clearer scenarios: chase call warrants after stabilizing above 93 yuan and breaking through 95 to 96 yuan, deploy more balanced call warrants after retreating to stabilize near 90 yuan, and switch to put warrants if it falls below 90 yuan and then drops further below 88.50 yuan.

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Disclaimer: 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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