Has the rebound opportunity arrived? Hong Kong stocks welcome a strong start in May
Zijin Mining retreats to test key support, technical outlook 'neutral'; short-term strength hinges on defense of 36.8 yuan
The closing price last session (7th) was 38.160, with the share price above the 10-day, 20-day, and 30-day moving averages, showing improvement in the short-term structure. The latest trading volume expanded alongside the rise in share price, indicating that the rebound has some capital support. However, the closing price from the previous session remained below the upper Bollinger Band at 38.594, meaning it is still in consolidation after a rebound and hasn't yet achieved a formal breakout.
Zijin Mining (02899) technical signal is 'neutral', with the RSI around 68, placing it in a moderately strong range. Compared to peers in the resources and gold sectors, $SD GOLD (01787.HK)$ And, $ZHAOJIN MINING (01818.HK)$ Technical signals are respectively 'buy' and 'sell', indicating divergence in fund flows within the sector. $MMG (01208.HK)$ And, $CHIFENG GOLD (06693.HK)$ Signals lean towards 'sell', and the RSI is relatively high (61-67), suggesting some peers have entered a short-term profit-taking pressure zone.
This implies Zijin's current 'neutral' status is essentially finding balance amid sector divergence, neither showing obvious selling pressure like some peers nor gaining strong buying consensus akin to Shandong Gold. Whether it can break through 38.594 will determine if it transitions from a 'sector follower' to a 'sector leader'.
Investor comments reflect mixed market sentiment, even showing some impatience. Some investors believe gold prices and other gold stocks have performed strongly, but Zijin Mining has not kept pace, leading to disappointment expressed as 'weak performance' or 'not moving despite rising gold prices.' However, many comments remain optimistic about future upward movement, suggesting the stock could rise to test levels of 39 to 40 or even return to 50 this year, reflecting continued mid-term bullish sentiment.
Common market questions focus on the range between 38 and 40 yuan. Investors are concerned whether 39 yuan can be broken through, how long it will take to reach 40, and what the next target might be. Technically, 38.594 yuan is the most critical threshold. If it can break through and stabilize above this level, there may be a continuation of strength in the short term, testing higher levels like 46.980. If it fails to break through, the price might consolidate back within the range of 36.850 to 36.418.
The Relative Strength Index (RSI) is approximately 68.371, showing strong momentum but not yet overheated, indicating room for further upside potential. However, breaking through 38.594 yuan would enhance the stock’s investment attractiveness. At this stage, the stock is not weak, but it hasn’t fully surged either—the key is whether the rebound can turn into a real breakout.
Overall, Zijin Mining's short-term reward-to-risk ratio is moderately high. As long as it holds above 36.850 to 36.418, the structure can be maintained. A breakout above 38.594 would create conditions to target 39, 40, or even higher levels.
Reply to some investors' views:
@LaraliuThe area near 38 yuan is indeed a key zone; true confirmation depends on whether 38.594 can stabilize.
@AntantWaiting for dividend distribution is a medium-term strategy, while short-term judgment still hinges on whether 38.594 is broken.
@正義的克洛伊The next target is to watch for a breakthrough at 38.594; after success, look toward 40 yuan and higher levels.
Based on the above analysis, the strategies for deployment can be divided into the following main approaches:
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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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