Meituan's continuous decline is pressuring market confidence

Market sentiment towards Meituan is noticeably weak, with comments mainly focusing on 'the broader market is rising but Meituan isn't,' 'continuous declines,' 'breaking below multiple moving averages,' and 'not yet bottoming out.' Even though some investors still see advantages in the food delivery experience or are watching new themes like AI healthcare, short-term stock performance has not cooperated, further pressuring market confidence.

The overall sentiment leans towards being bearish. The bearish side believes that Meituan's rebound lacks strength and is weaker compared to other Chinese tech stocks and Hong Kong tech shares; the bullish side mostly opts to wait for a better price to add positions rather than buying immediately. Common questions mainly revolve around whether Meituan has fallen close to its bottom, whether 85.528 can be reclaimed, and if it continues to fail, whether it will drop further.

Technically, Meituan’s current price is 81, below the 5-day line at 84.280, the 10-day line at 85.450, the 20-day line at 85.528, and the 30-day line at 83.153; the short-term trend remains weak. The Relative Strength Index (RSI) stands at 35.347, showing weak momentum. The current price is still below the middle band of the Bollinger Bands at 85.528, reflecting insufficient rebound strength and remaining in a consolidation phase at lower levels for now.

The short-term key lies at 85.528. If it can rise back above 85.528, there may be a chance to retest 90.442. If it fails to break through, the rebound will likely remain under pressure. Below, 80.613 serves as critical support; once broken, the trend will weaken further, and market sentiment waiting to add positions at lower prices will intensify.

Market investor views recap:

@Long-Hold Death@長持必死

The judgment that the bottom hasn't formed yet is reasonable. At the very least, it needs to hold above 80.613 and reclaim 85.528 for improvement.

@Yuanbao@圓寶

No clear strengthening is seen at this stage; support at 80.613 still needs to be monitored.

@Steady Monroe@穩重的夢露

Waiting for a suitable price to add positions is a safer approach; chasing at this stage is not advisable.

Meituan-W (03690) Key Deployment: A re-break above 85.528 yuan could present an opportunity to test 90.442 yuan; if it breaks below 80.613 yuan, the short-term trend may weaken further.

Strategy One | Short-term rebound after reclaiming 85.528 yuan

28065 | Strike Price 87.04 yuan | Actual Leverage 5.0x | Close to the first resistance level after rebound trigger, suitable for following up after confirming a break above the watershed.

27933 | Strike Price 86.99 yuan | Actual Leverage 5.0x | Closer to current price levels, suitable for capturing early-stage rebounds from lower levels.

28039 | Strike Price 86.95 yuan | Actual Leverage 4.1x | Lower leverage, suitable for those looking to reduce volatility while still betting on a continuation of the rebound.

$UBMTUAN@EC2610D.C (28065.HK)$$MSMTUAN@EC2610B.C (27933.HK)$$UBMTUAN@EC2612D.C (28039.HK)$

Strategy Two | Weakening after breaking below 80.613 yuan

21519 | Strike Price 82.83 yuan | Actual Leverage 5.5x | Close to current price, suitable for capturing the initial weakening phase after breaking support.

20793 | Strike Price 82.88 yuan | Actual Leverage 5.8x | Higher leverage, suitable for short-term bearish positions after confirmation of a breakdown.

23019 | Strike Price 82.83 yuan | Actual Leverage 5.9x | Higher sensitivity, suitable for use when the downtrend accelerates.

$UBMTUAN@EP2607A.P (21519.HK)$$CIMTUAN@EP2607A.P (20793.HK)$$GJMTUAN@EP2607A.P (23019.HK)$

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.

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