CATL turned weak after breaking below 664.160; short-term support to watch is 606.015

CATL is currently priced at 609.5 yuan, having broken below the 5-day, 10-day, 20-day, and 30-day moving averages, indicating a clear weakening in short-term momentum. The current price is below the middle Bollinger Band at 664.160, reflecting that the rebound structure has been disrupted. Immediate support is at 606.015, with the next level of support at 589.044.

The sentiment in the comments is somewhat divided, but overall, it has turned cautious. Some investors believe that the earlier gains have been excessive and a pullback is needed, while others are concerned about the significant weakness of H shares compared to A shares, the wide gap, and insufficient southbound capital, reflecting doubts about short-term support. On the other hand, some investors still think they can wait for a rebound and consider this a good time to increase holdings or even buy a position, indicating that some funds are still attempting to bet on a rebound at lower levels.

Common questions focus on three points: first, whether the decline is just a normal pullback; second, whether the strength in A-shares can drive H-shares; third, whether the current price is suitable for increasing holdings. Technically, it is not advisable to conclude a bottom has been reached too early since the stock price has yet to regain 664.160, which would confirm the rebound. If it can hold above 606.015, there may be an opportunity to consolidate and recover; if it breaks below 606.015, further downside towards 589.044 needs to be watched.

For short-term strategies, the risk-reward ratio is currently low, making it more suitable to observe whether the support at 606.015 holds. Rebound setups should wait for the price to rise back above 664.160; otherwise, it remains in a weak recovery phase.

Market investor commentary

@My World Has Light@我的世界有光Says: Bull and bear certificates move honestly in the opposite direction

When the underlying stock experiences high volatility, bull and bear certificates are easily affected by intraday fluctuations; directional judgment should first depend on whether 606.015 can hold steady.

@Lost Traveler@迷惘趕路人: Says: Twice unbroken, tomorrow could still be promising if unbroken

If 606.015 does not break down, there is still a chance for a short-term rebound, but regaining 664.160 is required to confirm the recovery.

@Xiaoyuer@小鱼儿It's just you and Baidu left, put in a bit more effort.

CATL’s H shares are currently showing clear signs of weakness and need to stabilize at the support level; relying solely on the broader market for upward momentum is insufficient.

CATL (03750): Key strategy: Hold above 606.015 and reclaim 664.160 to repair the trend; if 606.015 is breached, watch for a test of 589.044.

Strategy 1 | Rebound after holding above 606.015

25240 | Strike price 618.500 | Actual leverage 5.4x | Close to current price, suitable for technical rebound after stabilizing at support, highly sensitive

25111 | Strike price 618.500 | Actual leverage 6.6x | Higher leverage, suitable for amplifying returns during short-term rebound acceleration

26856 | Strike price 618.500 | Actual leverage 5.7x | Balanced option, suitable for gradual deployment in volatile conditions

$UB-CATL@EC2607A.C (25240.HK)$$BI-CATL@EC2607A.C (25111.HK)$$HS-CATL@EC2607A.C (26856.HK)$

Strategy 2 | Chasing the rebound after breaking through 664.160

15872 | Strike price 629.380 | Actual leverage 4.8x | Near-price setup, suitable for follow-up after breakout confirmation, with relatively controllable risk

28524 | Strike price 628.880 | Actual leverage 5.1x | Moderate leverage, suitable for following the trend after a breakout

13229 | Strike price 629.380 | Actual leverage 5.6x | Higher leverage, suitable for capturing extended upward movements after a breakout

$CI-CATL@EC2609A.C (28524.HK)$$BI-CATL@EC2609A.C (13229.HK)$

Strategy Three | Deployment upon weakness if it breaks below 606.015

27265 | Strike price 515.050 | Actual leverage 2.2x | Moderately out-of-the-money, suitable for short to medium-term bearish positions after breaking below support

27504 | Strike price 551.380 | Actual leverage 2.5x | Close to lower range, suitable for capturing downward moves towards around 589

27110 | Strike price 450.000 | Actual leverage 4.9x | Higher leverage, suitable for aggressive deployment when significant weakness occurs

$UB-CATL@EP2704A.P (27265.HK)$$HS-CATL@EP2703A.P (27504.HK)$$HU-CATL@EP2610A.P (27110.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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