May 13 [HK Stocks Podcast] Part-2 - Foxconn Interconnect, JD.com Health, Galaxy Entertainment

Foxconn Interconnect Technology shows strong short-term momentum, but the risk of entering at the current price has increased.

Foxconn Interconnect Technology is currently trading at 10.420, surging 11.68% today, showing very strong short-term momentum. The stock price is now above its 10-day moving average of 8.761, 20-day moving average of 8.289, and 30-day moving average of 8.036, and has broken through the upper Bollinger Band at 9.884, indicating the uptrend has accelerated. Trading volume has also significantly increased, supporting the sharp rise in price, signaling strong short-term buying interest.

Investors believe the stock could reach 12 yuan this week, which is an aggressive target. From a technical perspective, the stock price has surpassed the nearby high of 10.890, and if it remains above 9.884, there’s still potential for upward movement in the short term. However, the current price of 10.420 is still some distance from 12 yuan, and maintaining strong trading volumes and higher price levels will be necessary during this period; otherwise, profit-taking consolidation may occur first.

As for whether it is still a good time to enter, the answer is that the risk-reward ratio is less attractive compared to when the stock was at lower levels. The Relative Strength Index (RSI) is around 76.582, already considered a high level, indicating strong momentum but also posing overheating risks. The current price is significantly above the 10-day moving average of 8.761, meaning short-term entries carry greater volatility risks. If one wants to enter, a more reasonable approach would be to wait for the stock price to retest the 9.884 level and confirm it holds, ensuring follow-through after the breakout.

Overall, Foxconn Interconnect Technology remains a strong stock in the short term, with 9.884 being the most crucial threshold. Staying above it retains the potential for challenging 12 yuan, but falling below 9.884 requires caution as the stock might transition from a strong breakout to profit-taking. For now, the stock looks strong, but the risk of chasing the uptrend has increased.

JD Health shows strengthening short-term rebound momentum, but investors should watch whether it can stabilize above 50 yuan before considering entry.

JD Health is currently trading at 48.860, rising sharply by 7.53% today, with clear signs of a strengthening short-term rebound. The stock price has moved back above the 10-day moving average of 46.254, 20-day moving average of 46.848, and 30-day moving average of 47.534, indicating the recent weakness has been partially corrected. The middle line of the Bollinger Bands is at 46.848, the upper band at 49.916, and the lower band at 43.780. The current price is close to the upper band, reflecting strong rebound momentum but also approaching a resistance zone.

Investors have noted that the healthcare sector is finally gaining momentum, reflecting a shift in market sentiment from earlier hesitation to chasing strength. However, whether it's still viable to chase gains depends on whether JD.com Health can break through and stabilize above 49.916. If the price can surpass the upper Bollinger Band, there will be conditions for a short-term challenge towards 50 dollars; if it fails to break through, consolidation near the current price may occur first.

Investors targeting 50 yuan aren't unreasonable, as 50 yuan is very close to 49.916, making it the nearest key upside target. However, the Relative Strength Index (RSI) is approximately 68.592, already on the stronger side, though not extremely overheated. Since the stock has rebounded from a low of 44.340, the risk-reward ratio for chasing at the current price has decreased compared to earlier.

Investors holding call warrants with a strike price of 42.88 yuan will benefit more from the rebound in stock prices, as the current price is higher than the strike price and still retains elasticity. The key is whether JD Health can stabilize between 47.534 and 46.848. If the stock price holds above this support zone, the call warrants can still align with the rebound; if it falls below 46.848, the rebound structure will weaken, increasing the volatility risk for the call warrants.

Overall, JD Health's short-term trend has shifted from weak to stable, with 49.916 to 50 being the most important resistance level currently. Breaking through and stabilizing above this level would confirm a continuation of the rebound; until then, entering at the current price should not be overly aggressive. Support levels are first seen at 47.534 and 46.848, and only by holding these levels can one continue to aim for 50.

6. Galaxy Entertainment's short-term rebound remains unconfirmed, and reclaiming 40 yuan will still take time.

Galaxy Entertainment is trading at 33.280, up 2.91% today, showing signs of a short-term rebound, but the overall trend hasn't fully strengthened yet. The current price is above the 10-day moving average at 32.784 but remains below the 20-day moving average at 33.488 and the 30-day moving average at 34.090, indicating that while there is some short-term recovery, medium-term moving average pressures remain above.

The middle band of the Bollinger Bands is at 33.488, the upper band at 35.423, and the lower band at 31.553. The current price has not yet stabilized above the middle band. To confirm the continuation of the rebound, the first step is to break through and stabilize above 33.488, followed by challenging 34.090 and 35.423. Only after surpassing 35.423 does the trend have the potential to shift from a low-level rebound to a clearer strengthening.

Investors are asking when the stock will return to 40 yuan. Based on the current technical position, 40 yuan is not an immediate target. Galaxy Entertainment needs to first break through 35.423 before gradually recovering to higher levels. If it fails to rise above the range of 33.488 to 35.423, it’s more likely to consolidate at lower levels in the short term.

The Relative Strength Index (RSI) is approximately 55.892, which indicates a shift from weakness to stability but isn’t yet strong. This suggests that the stock has some rebound momentum, but there aren’t yet sufficient conditions to support a rapid return to 40 yuan. If the stock price falls back below 32.784, attention should be paid again to the support at the lower levels of 31.553 and 31.540.

Overall, Galaxy Entertainment's short-term rebound is forming but hasn’t completed a breakout yet. 33.488 is the first watershed, and 35.423 is the critical level for confirming a strengthening trend. Returning to 40 yuan requires breaking through and stabilizing above 35.423; otherwise, for now, we can only look for a rebound from lower levels, and it’s premature to expect a move to 40 yuan.

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, views, 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 with other data. Trading decisions should not be made solely based on this article. Please note that past performance is not indicative of future results. Follow Jenny's HK Stock Warrants for more professional insights.

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