Kuaishou Short-term Technical Analysis: Holding above the key level of HK$51 could lead to a challenge at HK$56

The latest price for Kuaishou (01024.HK) is HK$51.3, with a 5-day volatility as high as 27.4%, indicating significant stock price fluctuations. Regarding technical indicators, MA10, MA30, and MA60 are positioned at HK$46.79, HK$45.87, and HK$53.95 respectively. The stock price is above both MA10 and MA30 but below MA60, reflecting that short-term structure has improved significantly, though medium- to long-term trends remain weak. The Relative Strength Index (RSI) is at 67, nearing overheated levels. The overall technical indicator signal is "Neutral", with a strength rating of 9; multiple oscillation indicators simultaneously show neutral signals. Meanwhile, the Williams %R indicator is in overbought territory and suggests a sell signal, as does the stochastic oscillator. However, the CCI and ADX indicators remain neutral. Both MACD and Bollinger Bands give buy signals, showing that short-term momentum continues to support upward movement.

In terms of support and resistance levels, Kuaishou's short-term support levels are set at HK$48 and HK$43, while resistance levels stand at HK$58.3 and HK$62.2. The probability of an upward move calculated from technical conditions is 52%, indicating balanced forces between buyers and sellers, with slight upward momentum in the short term. Bollinger Bands and the MACD indicator both give buy signals, providing positive momentum reference for the short-term trend.

The [HK Stocks Podcast] column noted on May 11 that Kuaishou’s current price of HK$51.6 had rebounded significantly from the low of HK$41.92, breaking through the upper band of the Bollinger Bands at HK$51.004. The trend shifted from weak sideways movement to a short-term breakout, with noticeable improvement in the technical structure. HK$51.004 is currently the most critical short-term threshold – as long as the stock price can hold above it, there remains potential for continued strength in the short term, with the next target being the market-observed HK$56. However, the column also mentioned that RSI had risen to about 74.9, which indicates an overheated level. Though the uptrend is strong, the risk of chasing the rally increases simultaneously. If the stock price falls below HK$51.004, the breakout will fail, and the stock may retest the support near HK$45.7. Comparing this view with the latest price of HK$51.3 on May 13, the stock remains above HK$51, meaning the condition of holding the key threshold still holds, but there is still a range to observe before reaching the HK$56 target.

Reviewing the performance two days after mentioning four Kuaishou warrant products on May 7, all four products recorded significant gains within two trading days. HSBC call warrants (27738) rose by 28% in two days, J.P. Morgan bull certificates (69508) gained 34%, J.P. Morgan bull certificates (68122) increased by 29%, and UBS Group call warrants (27777) climbed by 26%. Meanwhile, the underlying stock only rose by 6.61% during the same period.

Based on the short-term trend analysis of Kuaishou – short-term and daily charts are in a rebound recovery phase, but medium- to long-term trends remain weak. Strategies are better suited for deploying rebounds from lower positions or short-term range trading, avoiding aggressive pursuit of breakouts. Combining the current support and resistance framework, six different warrant and bull/bear certificate options are provided for investors, each corresponding to different stock price ranges and risk preferences:

Kuaishou short-term investment strategy assessment: Short-term and daily charts show rebound potential, but medium to long-term remains weak. Suitable for short-term Call and Put trades on rebounds from lower levels; avoid aggressively chasing breakouts.

Strategy One: Rebound from a low position (Call)

27056｜48.88｜5.5x leverage｜In-the-money product, more suitable for use after a pullback rebound

25667｜81.88｜7.2x leverage｜Higher leverage, suitable when rebound momentum strengthens

26036｜81.93｜7.5x leverage｜High elasticity, suitable for short-term rebound continuation

$MBKUASO@EC2607A.C (27056.HK)$$UBKUASO@EC2608A.C (25667.HK)$$MSKUASO@EC2607B.C (26036.HK)$

Strategy Two: High Leverage Short-Term Trading (Put)

28110｜32.50｜5.1x leverage｜Higher leverage, suitable for short-term trading when the downtrend resumes

28376｜32.48｜4.8x leverage｜High elasticity, suitable for use once weakness is confirmed

28296｜32.48｜4.9x leverage｜Suitable for quick in-and-out trades after breaking below short-term support

$CIKUASO@EP2610A.P (28110.HK)$$UBKUASO@EP2610A.P (28376.HK)$$HUKUASO@EP2610A.P (28296.HK)$

Warm Reminder: This article does not constitute any investment advice. It 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 evaluation of asset performance should be made using other data, and trading decisions should not be based solely on this article. Please note that past performance is not indicative of future results. Follow HK Stocks Warrants Jenny for more professional insights.

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