Ganfeng Lithium is in a technical divergence, with its stock price surge receiving a 'Sell' rating; 85.3 yuan becomes a key resistance.

The closing price on the previous day (August 28) was 78.500, with short-term upward momentum clearly slowing. Although it remains above the 20-day line at 77.995, the 30-day line at 72.443, and the 60-day line at 67.403, the rebound structure has not been completely broken, the stock price is now below the 5-day line at 78.800 and the 10-day line at 79.945, indicating weakening short-term buying momentum.

Looking at the lithium battery industry chain, the market generally fell on the previous day. $CATL (03750.HK)$ Plummeted by 6.88%, Ganfeng Lithium (01772) fell by 1.88%, $TIANNENG POWER (00819.HK)$ Down by 1.60%. Technical signals show divergence: despite the broad-based decline in stock prices, Ganfeng Lithium's technical indicator summary signal is 'Sell'. In contrast, the technical signals for CATL and TIANDONG Power are both 'Neutral'.

This indicates that Ganfeng’s adjustment is occurring in an environment where the sector as a whole is under pressure and its own technical rating has turned cautious. Its 'Sell' signal contrasts with a still relatively strong RSI, highlighting the growing risk of short-term profit-taking and technical pullbacks. This also means that for its rebound to continue, it will not only depend on the sector stabilizing (especially the leading company CATL), but also require strong momentum to reverse the bearish technical signals.

The main points of discussion focus on risks ahead of earnings, major institutions selling, whether there is distribution at highs, and whether the price can retest 85 dollars. Some investors believe the stock price is just correcting and would continue to add positions if given the chance; however, more comments clearly lean towards concern, believing that the market opened sharply lower, Morgan Stanley is selling, there are large unusual trades, and even worry it might be 'harvesting' or starting a slow decline.

Market sentiment is weak, with insufficient short-term confidence. The optimistic side still expects the stock price to return to 85 dollars after earnings; the pessimistic side believes that risks at current highs have increased, especially if the stock price fails to regain the 10-day moving average at 79.945, the market is likely to interpret the pullback as distribution or capital withdrawal.

Common questions focus on three points:

First, whether there is still room for an increase before earnings;

Second, whether large orders and selling by major institutions indicate capital outflows;

Third, whether the stock price will fall back to 72 dollars or even lower.

Technically speaking, 77.995 is the short-term key level; holding above this level indicates the rebound structure remains intact; if it breaks below, market sentiment may weaken further.

Technically, if Ganfeng Lithium can reclaim 79.945, it would have the opportunity to improve short-term momentum and retest resistance at 85.262. Conversely, if it falls below 77.995, the rebound structure will weaken, and the next support level to watch will be 72.443. The Relative Strength Index stands at 48.664, momentum has turned neutral, and chasing at current levels offers limited upside potential.

Reply to some investors' views:

@馬鞍山安孝燮

If earnings can drive capital inflows, the first key level to break is 79.945, which would then open a chance to test 85.262.

@陈醋牛牛 @陈醋牛牛

For those considering adding positions, 77.995 is a crucial short-term observation level; if it fails to hold, risk control measures should be taken.

@托塔天王李靖

The current price has not fallen below the pivotal level, but before reclaiming 79.945, the market may interpret this as distribution at higher levels.

Based on the above analysis, the strategies for deployment can be divided into the following main approaches:

Key deployment: Hold above 77.995 for a rebound play. A break above 79.945 allows chasing towards 85.262. If 77.995 fails, guard against a retest of 72.443.

Strategy One | Rebound Deployment by Holding Above 77.995

$UBGANFE@EC2607A.C (25556.HK)$ | Strike Price 88.77 | Actual Leverage 4.1x | Positioned near the current price on the upside, suitable for holding support and playing a sustained rebound.

$BPGANFE@EC2607A.C (25346.HK)$ | Strike Price 88.77 | Actual Leverage 4.7x | Higher leverage, suitable for capturing short-term rebound acceleration and volatility.

$HSGANFE@EC2607A.C (25149.HK)$ | Strike Price 88.72 | Actual Leverage 4.3x | Balanced leverage and distance, ideal for stable trend-following.

Strategy Two | Breakout Above 79.945 to Chase Strength

$UBGANFE@EC2609A.C (25276.HK)$ | Strike Price 100.98 | Actual Leverage 3.5x | Mid-range out-of-the-money configuration, suitable for extended breakout plays.

$MSGANFE@EC2609A.C (25245.HK)$ | Strike price 100.98 | Actual leverage 3.6x | Higher leverage in the same range, suitable for chasing momentum after confirming a breakout

$CIGANFE@EC2609A.C (22656.HK)$ | Strike price 100.88 | Actual leverage 3.5x | Similar terms, suitable for building positions incrementally to chase momentum

Strategy Three | If 77.995 is breached, watch out for pullback

$JPGANFE@EP2607A.P (25165.HK)$ | Strike price 58.48 | Actual leverage 4.4x | Moderate leverage, suitable for capturing downside after breaking through the watershed

$MBGANFE@EP2607B.P (25340.HK)$ | Strike price 58.43 | Actual leverage 4.1x | Concentrated street inventory, suitable for following downward momentum

$HUGANFE@EP2607A.P (25288.HK)$ | Strike price 58.43 | Actual leverage 4.4x | High sensitivity in the same range, suitable for short-term sharp declines

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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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