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Domestic chip prices surge! Hong Kong-listed semiconductor stocks soar across the board
港股窩輪Jenny
joined discussion · May 7 09:02

Changfei Fiber Optic has broken below the pivotal level of 221. Retail investors are hoping for a V-shaped rebound, but in the short term, it needs to first regain 225.940.

From the perspective of the optical communications and technology sector, the market performance was mixed on the previous day (6th). $SMIC (00981.HK)$ surged 5.72%, while $YOFC (06869.HK)$
fell 4.07%, $SUNNY OPTICAL (02382.HK)$ Dropped by 1.73%, $CHINA TOWER (00788.HK)$ Slightly fell by 0.54%. Technical signals show significant divergence: despite the sharp rise in stock price, SMIC’s technical indicator summary signal is “Sell,” indicating the system judges it to be in an extremely overbought region.
From the perspective of the optical communications and technology sector, the market performance was mixed on the previous day (6th). $SMIC (00981.HK)$ surged 5.72%, while $YOFC (06869.HK)$ fell 4.07%, $SUNNY OPTICAL (02382.HK)$ dropped 1.73%, $CHINA TOWER (00788.HK)$ slightly declined by 0.54%. Technical signals showed significant differences: Despite the sharp rise in stock prices, SMIC's technical indicator summary signal was 'sell,' indicating that the system judged it to have entered an extremely overbought region. In contrast, Changfei Optical Fiber’s technical signal is 'neutral.' This indicates that the pullback after Changfei’s high level is occurring in an environment where the internal trend of the sector has become extremely differentiated and the technical ratings of strong stocks are showing divergence. Its 'neutral' signal contrasts with the mixed rises and falls among peers, highlighting that funds have not uniformly flowed out of the technology sector but rather undergone intense structural rotation. This also implies that for Changfei’s short-term rebound to occur, it will not only need to recover key levels itself but also observe whether funds in the sector will flow out from already extremely overbought stocks (such as SMIC) and back into stocks that have seen deeper adjustments. Changfei Optical Fiber & Cable closed at 216.600 on the previous day, showing weak consolidation after a high-level pullback in the short term. The stock price is below the middle line of the Bollinger Bands at 221.490 and the 10-day moving average at 225.940, indicating that short-term support above has been lost; although still above the 30-day moving average at 206.243 and the lower line of the Bollinger Bands...
In contrast, Yangtze Optical Fibre's technical signal is “Neutral.” This indicates that the pullback from highs in Yangtze Optical Fibre occurs in an environment of extreme divergence within the sector and where strong stocks’ technical ratings are showing divergence. Its “neutral” signal, compared with mixed gains and losses among peers, highlights that funds have not uniformly flowed out of the technology sector but instead undergone intense structural rotation. This also means that for Yangtze Optical Fibre’s short-term rebound to develop, it not only needs to recover key levels itself but also requires observing whether funds will flow out of extremely overbought stocks (such as SMIC) and back into stocks that have seen deeper corrections.
From the perspective of the optical communications and technology sector, the market performance was mixed on the previous day (6th). $SMIC (00981.HK)$ surged 5.72%, while $YOFC (06869.HK)$ fell 4.07%, $SUNNY OPTICAL (02382.HK)$ dropped 1.73%, $CHINA TOWER (00788.HK)$ slightly declined by 0.54%. Technical signals showed significant differences: Despite the sharp rise in stock prices, SMIC's technical indicator summary signal was 'sell,' indicating that the system judged it to have entered an extremely overbought region. In contrast, Changfei Optical Fiber’s technical signal is 'neutral.' This indicates that the pullback after Changfei’s high level is occurring in an environment where the internal trend of the sector has become extremely differentiated and the technical ratings of strong stocks are showing divergence. Its 'neutral' signal contrasts with the mixed rises and falls among peers, highlighting that funds have not uniformly flowed out of the technology sector but rather undergone intense structural rotation. This also implies that for Changfei’s short-term rebound to occur, it will not only need to recover key levels itself but also observe whether funds in the sector will flow out from already extremely overbought stocks (such as SMIC) and back into stocks that have seen deeper adjustments. Changfei Optical Fiber & Cable closed at 216.600 on the previous day, showing weak consolidation after a high-level pullback in the short term. The stock price is below the middle line of the Bollinger Bands at 221.490 and the 10-day moving average at 225.940, indicating that short-term support above has been lost; although still above the 30-day moving average at 206.243 and the lower line of the Bollinger Bands...
Yangtze Optical Fibre & Cable closed at 216.600 yesterday; short-term, it remains weak after a pullback from recent highs. The stock price is below the Bollinger Band midline at 221.490 and the 10-day moving average at 225.940, meaning short-term support has been lost; although still above the 30-day moving average at 206.243 and the lower Bollinger Band at 197.648, it hasn’t entirely weakened, but until it can break back above 221.490, its rebound momentum remains insufficient.
The most critical level at this stage is 221.490. If the stock price can break back above this level, it may first aim for 225.940 in the short term. If it further breaks above 225.940, the trend will be considered significantly improved, and then there will be potential to aim for 245.332. Conversely, if Changfei continues to face pressure and falls below 206.243, the entire consolidation pattern following the previous high will shift to a clearer downtrend, with 197.648 becoming the next key support level.
In terms of trading volume, the latest trading bar shows an increase in volume accompanying the stock price drop, which is a bearish signal. A significant drop in price on higher volume indicates increased selling pressure, rather than a normal pullback with shrinking volume. For a previously strong stock at higher levels, this kind of movement suggests that short-term profit-taking is beginning to appear, and buying interest is less than ideal. The Relative Strength Index (RSI) is around 47.235, showing weak momentum, and before reclaiming 221.490, the risk-reward ratio isn't favorable.
Among investor comments, bullish views are mainly focused on: 'Every pullback is a buying opportunity,' 'There’s a chance for a V-shaped recovery by the close,' and 'Much stronger than Cambridge.' These opinions reflect that the market still believes in Changfei's strong fundamentals as a leading stock, but short-term trading should not rely solely on past strength. Currently, the stock price has fallen below 221.490, and if it cannot quickly recover, this adjustment might not simply be a buying opportunity; instead, one must beware of continued profit-taking from higher levels.
Bearish comments mainly focus on 'too weak,' 'taking over the position,' and 'no rise today.' These views are relatively close to the current technical state, as the stock price is indeed below the 10-day line and the watershed, with trading volume also falling sharply. However, it is not appropriate to directly conclude that the trend has completely ended at this stage, because the 206.243 level has not been breached. As long as the stock price can stabilize above 206.243, there is still a chance for recovery.
The most noteworthy comments are those expressing hesitation. The phrase 'whether to hold overnight or not' actually reflects insufficient confidence in holding short-term positions. If the stock price fails to rebound above 221.490, the overnight risk will be higher; if the closing price can return above 221.490, short-term risks will decrease. Questions like 'why can't it reach 220' and 'why isn’t it following the A-share market up' indicate that Hong Kong-listed Changfei Optics currently lacks sufficient support and cannot simply be judged based on similar sector trends or the movement of A-shares.
Overall, Changfei Optics is not completely weakening, but it has transitioned from a strong position into a consolidation phase around higher levels, leaning towards weakness. The short-term framework is very clear: only by rebounding above 221.490 can we look towards 225.940; breaking through 225.940 would improve the rebound prospects; if it falls below 206.243, one should beware of a retest of 197.648. Those without positions should avoid rushing to chase the stock before reclaiming the watershed, while those already holding should monitor whether 206.243 holds.
Changfei's biggest issue now is not the lack of catalysts, but that the short-term price action is no longer supportive. A pullback in strong stocks can present opportunities, but only if support holds and the watershed is reclaimed. Before breaking back above 221.490, all bullish expectations should only be treated as pending confirmation.
Reply to some investors' views:
@231441770: If the close can form a V-shape and regain 221.490, the short-term situation would improve; otherwise, caution against profit-taking remains necessary.
@23946769Failing to reach 220 reflects insufficient short-term support; the key focus is whether it can reclaim 221.490.
@劍雄2502: Not following the A-share market upward suggests Hong Kong-listed shares haven’t seen noticeable inflows; judgment should still rely on 221.490 and 206.243.
Based on the above analysis, the strategies for deployment can be divided into the following main approaches:
$SG-YOFC@EC2703A.C (28304.HK)$$HU-YOFC@EC2704A.C (28170.HK)$
From the perspective of the optical communications and technology sector, the market performance was mixed on the previous day (6th). $SMIC (00981.HK)$ surged 5.72%, while $YOFC (06869.HK)$ fell 4.07%, $SUNNY OPTICAL (02382.HK)$ dropped 1.73%, $CHINA TOWER (00788.HK)$ slightly declined by 0.54%. Technical signals showed significant differences: Despite the sharp rise in stock prices, SMIC's technical indicator summary signal was 'sell,' indicating that the system judged it to have entered an extremely overbought region. In contrast, Changfei Optical Fiber’s technical signal is 'neutral.' This indicates that the pullback after Changfei’s high level is occurring in an environment where the internal trend of the sector has become extremely differentiated and the technical ratings of strong stocks are showing divergence. Its 'neutral' signal contrasts with the mixed rises and falls among peers, highlighting that funds have not uniformly flowed out of the technology sector but rather undergone intense structural rotation. This also implies that for Changfei’s short-term rebound to occur, it will not only need to recover key levels itself but also observe whether funds in the sector will flow out from already extremely overbought stocks (such as SMIC) and back into stocks that have seen deeper adjustments. Changfei Optical Fiber & Cable closed at 216.600 on the previous day, showing weak consolidation after a high-level pullback in the short term. The stock price is below the middle line of the Bollinger Bands at 221.490 and the 10-day moving average at 225.940, indicating that short-term support above has been lost; although still above the 30-day moving average at 206.243 and the lower line of the Bollinger Bands...
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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. 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; asset performance should be comprehensively evaluated using other sources of information, and trading decisions should not be made solely based on this article. Please note that past performance is not indicative of future results.
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Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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