Geely Auto (00175) has broken below multiple moving averages, but the mid-term structure remains intact

Comments on Geely Auto (00175) are notably bearish. Investors are mainly concerned about whether the stock has peaked, whether it has broken key levels, if a slow decline will occur, and whether the drop before earnings reflects fundamental risks. Although some comments suggest it may be nearing a short-term bottom and that the Relative Strength Index (RSI) is approaching oversold levels, overall market confidence is clearly lacking.

Market sentiment is leaning towards panic and disappointment. Bearish or exit sentiments dominate, with investors generally believing the trend is declining day by day, and rebounds are easily seen as opportunities to lure buyers before further declines. The bullish side is mainly hoping for a rebound from oversold conditions and support from major analysts' target prices, but a clear consensus on buying support has yet to form.

Common questions focus on three aspects: First, has Geely Auto broken key levels; second, is the current price close to a short-term bottom; third, does the continued decline before earnings indicate financial report risks? Technically speaking, the price is now close to support and oversold zones, but whether a rebound can hold depends on whether 21.938 can be defended and whether 23.409 can be reclaimed.

Technically, Geely Auto’s current price is HKD 21.7, below the 5-day line at 23.668, the 10-day line at 24.076, and the 20-day line at 23.409, indicating that the short-term upward momentum has clearly weakened. However, the stock price is still above the 30-day line at 21.938 and the 60-day line at 19.149, meaning the mid-term rebound structure has not been completely broken. The Relative Strength Index (RSI) stands at 29.856, close to the oversold zone, suggesting potential for a technical rebound in the short term. But unless 23.409 is re-established, any rebound should only be considered weak. If 21.938 fails to hold, watch for a further test of 20.418.

Short-term deployment with 21.938 as the defensive level and 23.409 as the rebound confirmation level; avoid rushing to judge a bottom until recovery is confirmed.

Geely Auto (00175)

Key deployment: 21.938 as short-term support, holding steady allows for a rebound play. Breaking above 23.409 is necessary for strengthening conditions. If it fails to hold, a retest of 20.418 is expected.

Strategy One | Rebound Deployment After Holding Above 21.938

20773 | Strike Price 24.75 | Actual Leverage 9.1x | Close to current price on the upside, high leverage setup suitable for short-term rebound amplification after stabilization.

21621 | Strike Price 24.77 | Actual Leverage 8.8x | Same range but slightly lower leverage, suitable for controlled volatility rebound plays.

27935 | Strike Price 23.99 | Actual Leverage 4.5x | Closer pricing structure, suitable for steadily capturing rebound phases.

$HSGEELY@EC2606A.C (20773.HK)$$GJGEELY@EC2606A.C (21621.HK)$$MSGEELY@EC2611A.C (27935.HK)$

Strategy Two | Momentum Following After Breaking Through 23.409

27935 | Strike Price 23.99 | Actual Leverage 4.5x | First tool for following momentum after the breakout, suitable for trend-following operations.

27618 | Strike Price 27.82 | Actual Leverage 4.8x | Mid-distance out-of-the-money, suitable for holding post-breakout towards upper resistance.

27869 | Strike Price 27.82 | Actual Leverage 4.7x | Stable structure, suitable for deployment expecting upward momentum after a breakout

$MSGEELY@EC2611A.C (27935.HK)$$HSGEELY@EC2611A.C (27618.HK)$$UBGEELY@EC2611A.C (27869.HK)$

Strategy Three | Deployment after breaking below 21.938 indicating weakness

28278 | Strike Price 18.49 | Actual Leverage 4.0x | Close to lower support, ideal for capturing early pullbacks after a breakdown

28169 | Strike Price 18.47 | Actual Leverage 4.0x | Mid-range out-of-the-money, suitable for continuing downtrend plays

27780 | Strike Price 16.99 | Actual Leverage 4.7x | Further strike price, suitable for expecting deeper correction and reducing shake-out risks

$BPGEELY@EP2610A.P (28278.HK)$$UBGEELY@EP2610B.P (28169.HK)$$UBGEELY@EP2610A.P (27780.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.

$Hang Seng Index (800000.HK)$$Hang Seng TECH Index (800700.HK)$

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