Xiaomi revisits the RMB30 range, should investors take positions now or stay on the sidelines?

$XIAOMI-W (01810.HK)$ The market opened lower today and continued to weaken, hitting an intraday low of RMB30.84. Technically, Xiaomi has broken below multiple moving averages. Based on market commentary, investor sentiment is clearly divided. Some investors believe that support is gradually forming around RMB30, even seeing it as the last chance for a low-cost entry, with expectations still high regarding buybacks, autonomous driving, and AI-related themes. However, others see the rebound as weak with insufficient trading volume, and some are even bearish about a drop below RMB30 or further testing of lower levels. Overall, the market currently lacks clear direction, with more of a tug-of-war between bulls and bears around the RMB30 level.

Common questions focus on three areas: First, whether the RMB30 level can hold; second, if this stage represents a low-cost accumulation zone; and third, whether the rebound has enough momentum to continue. Technically, RMB31.528 remains the key short-term inflection point. If Xiaomi can stabilize above it, there’s potential to test resistance at RMB32.200 again. However, failure to hold this level could lead to another search for support near RMB30.482.

In terms of technical consolidation, the Relative Strength Index (RSI) stands at 48.237, indicating average short-term momentum without clear strength. Xiaomi's share price has been consistently trading below the middle band of the Bollinger Bands, showing weak performance. If the decline continues in the short term, it will directly test support at RMB30.36. A quick break below that level would expose the next support at the March low of RMB30.26. If that low is convincingly breached, a new downside could open up, targeting the psychological level of RMB28.

For short-term positioning, stabilization above RMB31.528 and a breakout above RMB32.200 would present an opportunity to further test resistance at RMB33.296. Conversely, if RMB31.528 fails to hold, market expectations for testing the RMB30 level will increase.

Key deployment: 31.528 is the watershed. If it holds steady, a consolidation and rebound strategy can be maintained. A breakout above 32.200 could lead to a retest of 33.296; if 31.528 is breached, a pullback towards 30.36 should be monitored, and the strategy would need to turn bearish.April 22nd [HK Stocks Podcast] Part-1 - Hang Seng Index, AAC Technologies, Xiaomi,

Strategy One | Deployment to hold above 31.528 on pullbacks

$UBXIAMI@EC2612A.C (13135.HK)$ | Strike Price 37.15 | Actual Leverage 4.8x | Moderate leverage, suitable for accumulating in segments near support levels, targeting a gradual rise from the consolidation zone to the resistance zone.

$SGXIAMI@EC2612D.C (24819.HK)$ | Strike Price 37.12 | Actual Leverage 4.8x | Balances flexibility and stability, ideal as a core position for rebounds, focusing on capturing the upside from the 30-31 range.

$UBXIAMI@EC2610C.C (28164.HK)$ | Strike Price 39.8 | Actual Leverage 6.0x | Higher leverage, suitable for amplifying rebound magnitude after stabilization, intended for short-term acceleration.

Strategy Two | Breakout above 32.200 momentum-chasing deployment

$UBXIAMI@EC2609E.C (28195.HK)$ | Strike Price 37.01 | Actual Leverage 6.4x | Close to current price range, suitable for following through after a breakout with direct response to upward momentum.

$BIXIAMI@EC2612A.C (13186.HK)$ | Strike Price 37.15 | Actual Leverage 5.1x | Steady pace, suitable for adding positions in stages after confirming the breakout, aiming for a gradual push towards the 33 range.

$UBXIAMI@EC2712A.C (25395.HK)$ | Strike Price 35.9 | Actual Leverage 2.8x | Lower leverage but longer time value, suitable for those who prefer a less aggressive approach and wish to hold positions while expecting an extended upward trend.

Strategy Three | Bearish deployment upon breaking below 31.528

$UBXIAMI@EP2608A.P (26121.HK)$｜Strike price 28.16｜Actual leverage 6.2x｜Retesting 30.36 after a close breakdown; suitable for shorting following the breakdown of the pivotal level.

$UBXIAMI@EP2612A.P (28168.HK)$｜Strike price 24.98｜Actual leverage 4.0x｜A more conservative bearish position, suitable for expecting a continued decline without being overly aggressive.

$UBXIAMI@EP2606C.P (23000.HK)$｜Strike price 32.16｜Actual leverage 6.7x｜High sensitivity tool at the strike price, ideal for capturing rapid declines after a short-term breakdown.

Reply to some investors' views:

@遵守纪律啊The target for a deeper pullback is 28, while in the short term we first watch whether 31.528 breaks down.

@根正苗红五道杠There are positive expectations on the thematic front, but the stock price has not yet broken out of consolidation in the short term.

@20694868The recent trend has indeed been weaker, and the overall consolidation pattern has not reversed yet.

@小米上60If it breaks below 31 again, short-term pressure will increase, with 30.36 becoming the next key observation level.

@@26516936At present, the bullish sentiment is still weak, but downside support has not completely collapsed.

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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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