CATL (3750) resistance zone between 656.5 and 664.1 yuan; a breakout is required to turn bullish.

$CATL (03750.HK)$ CATL is currently trading at 627, with the short-term trend clearly weakening. The stock price has fallen below the 5-day, 10-day, 20-day, and 30-day moving averages, reflecting that the previous strong structure has been disrupted. Although the current price remains above the lower Bollinger Band at 588.912, the rebound momentum is still insufficient without breaking back above 656.516, leaving the stock in a weak consolidation phase for now.

The focus of comments is clearly concentrated on three directions: share placement, whether the peak has been reached, and whether it's a good time to buy the dip. Some investors believe that discounted share placements put pressure on the stock price, while others are concerned about whether they should exit if the price doesn't recover after the placement. On the other hand, some investors believe that prices may rebound post-placement, choosing to buy the dip or continue holding.

Market sentiment is divided, but short-term panic has clearly risen. The bearish side believes that the stock price has peaked and still has room to fall, with some investors even starting to short the stock. The bullish side, however, continues to trust in the company’s fundamentals and capital support, hoping for a recovery in the stock’s trajectory after the completion of the share placement. Overall, the market has yet to form a consensus on whether the bottom has been reached.

The main frequently asked questions are whether the price will rise or fall after the rights issue, whether the current price is suitable for bottom-fishing, and whether there is still a chance to return to previous highs. Technically, the lower Bollinger Band at 588.912 has not been breached yet, with support currently holding at 629.000. However, for a rebound to be confirmed, the price must first break back above 656.516. If 588.912 is also lost, the downtrend may deepen further.

For short-term strategies, it is not advisable to assume a bottom has been reached just because of a sharp drop at this stage. A re-break above 656.516 would present an opportunity to test levels between 664.116 and 680.200. If 588.912 is broken, one should be mindful of further downside risks.

@升勢凌厲, asking: When will the price recover?

: The conditions to approach previous highs require reclaiming both 656.516 and 664.116 first.

@沧海笑看风云淡, indicating: It has already peaked and there is further room for decline.

: No bottom confirmation yet; if 588.912 is breached, downside risks will increase.

@税将军, stating: I want to buy the dip.

: Until 656.516 is reclaimed, bottom-fishing remains a high-risk bet on a rebound.

CATL (03750): Key strategy points: Conditions for a rebound only arise upon reclaiming 656.516, with upside targets at 664.116 to 680.200. If 588.912 is breached, further downside testing should be anticipated.

Strategy One | Rebound Deployment After Retaking 656.516

15872 | Strike Price 629.38 | Actual Leverage 5.1x | Close to current price, suitable for capturing early rebound after regaining the threshold

13229 | Strike Price 629.38 | Actual Leverage 5.5x | Higher flexibility, suitable for use when short-term rebound accelerates

26770 | Strike Price 668.00 | Actual Leverage 5.2x | Near upper resistance zone, suitable for following up after rebound confirmation

Strategy Two | Chase 680.200 after breaking through 664.116

28459 | Strike Price 799.50 | Actual Leverage 4.8x | Mid-out deployment, suitable for chasing rebound extension after breakout

28251 | Strike Price 788.50 | Actual Leverage 5.0x | Higher leverage, suitable for capturing faster gains after turning stronger

28063 | Strike Price 788.50 | Actual Leverage 4.9x | Balanced terms, suitable for phased deployment after breakout confirmation

Strategy Three | Guard against pullback if 588.912 is breached

27083 | Strike Price 550.88 | Actual Leverage 2.2x | Closer to support, suitable for more stable defense after breach

27265 | Strike Price 515.05 | Actual Leverage 2.2x | Larger downside room, suitable for expecting extended pullback

27504 | Strike price 551.38 | Actual leverage 2.4x | Slightly higher elasticity, suitable for capturing downside after confirming a downtrend

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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