After breaking below the midpoint, Huahong Semiconductor has entered an adjustment phase. Retail investors are most concerned that it may fail to break through 122 yuan and then retreat back to 110 yuan.
$HUA HONG GRACE (01347.HK)$ The previous day (18th) closed at 115.800 yuan, retreating from recent highs and transitioning from a previously strong trend into an adjustment phase. The current price of 115.800 has broken below the 10-day moving average of 127.330 yuan and is nearing the 20-day moving average at 116.795 yuan. The midline of the Bollinger Bands is also near 116.795 yuan, and the price has fallen below this level, indicating that the short-term upward momentum is beginning to weaken. Although the 30-day moving average around 107.485 yuan remains below, the medium-term uptrend is not completely broken, but there is noticeable short-term selling pressure, and the stock price has temporarily failed to return to a strong range.
Hua Hong Semiconductor's technical signal is "neutral" (pullback from highs). Compared to industry leaders, $SMIC (00981.HK)$ it closed at 68.70 yuan with an RSI of approximately 52, and the technical signal is similarly "neutral" (weak fluctuations). This indicatesthat the semiconductor sector as a whole is in a "consolidation phase with slight weakness" at high levels.It is not only Huahong that has weakened, but the entire sector's funds have experienced profit-taking at higher levels, lacking new incremental capital to drive further breakthroughs.
Based on sentiment in the comments, there's currently fierce divergence regarding Huahong Semiconductor. The bullish camp still believes the stock price could rally again, even hoping for a return to 122 yuan, 125 yuan, or 130 yuan. Some investors continue to believe that after consolidation, funds may suddenly trigger a sharp upward movement. Such comments reflect that the market still remembers the hype surrounding the semiconductor sector, especially since Huahong’s previous uptrend attracted significant capital inflows. Retail investors are still hoping that the price is just undergoing short-term fluctuations rather than signaling the end of the uptrend.
However, there is noticeable impatience within the bullish sentiment. Some hope for a 10% rise in a single day, others expect a jump to 150 yuan within a week, and some believe that surpassing 120 yuan is crucial. This indicates that many bulls are no longer deploying slowly at lower levels but are waiting for rapid price recovery in a high-volatility environment. When the market’s expectations for large daily gains or aggressive upward moves become too concentrated, disappointment can quickly amplify if the stock fails to break through 122 yuan, creating downward selling pressure.
The focus of bearish comments is more concentrated: if the stock cannot break through 122 yuan, the price may retreat to around 110 yuan. Many investors have mentioned patterns such as rising without volume, falling with increasing volume, short-lived spikes followed by drops, distribution-like moves, stepwise declines, and morning surges followed by lunchtime retreats and afternoon plunges. This reflects that the market is not just pessimistic about the stock price but has started viewing Huahong as having entered a distribution phase following a high-level selloff. For short-term funds, this kind of sentiment is important because once the market believes rebounds are merely for distribution, the willingness to chase prices will rapidly decline.
The technical picture also supports this cautious assessment. Huahong’s closing price yesterday was 115.800 yuan, already breaking below the 10-day moving average of 127.330 yuan and dropping near the 20-day moving average and the middle Bollinger Band. The 122-yuan level is now the most critical threshold; only by breaking above and stabilizing above it will there be a short-term chance to regain strength. If the stock cannot recover above 122 yuan, any rebound should be considered a pullback within an adjustment rather than a resumption of the uptrend. Immediate resistance lies at 122 yuan, followed by 128.620 yuan; without renewed trading volume, targeting 130 yuan or even 150 yuan in the short term would be overly aggressive.
On the downside, 113.600 yuan is the first key support. The current price is not far from this level, and if the decline continues in the short term, the market will soon test the support around this area. If 113.600 yuan holds firm, the stock price may still consolidate near 115 yuan before attempting a rebound to test 120 to 122 yuan. However, if 113.600 yuan is breached, the next support will be around 109 yuan. Market chatter repeatedly mentions 110 yuan, which coincides with this technical zone. In other words, 110 yuan is not just an emotional price call but a natural focal point near the short-term support zone.
Comments from retail investors reflect their current pain point: rapid stock price fluctuations with abrupt directional changes. Some ask what happened in the afternoon session, others note the usual pattern of morning gains, midday declines, and sharp drops post-lunch, while some wonder whether they should sell at 120 yuan or short at 121 yuan. These remarks suggest the market has entered a short-term trading-dominated state, where holders dare not sit tight, bears wait for rebounds to sell, and onlookers hesitate around 120 yuan about exiting. When a stock transitions from strong momentum into volatile consolidation at highs, operational difficulty significantly increases.
Volume analysis is crucial to understanding the recent movement of Huahong. During the recent upward phase, there was noticeable volume expansion, indicating active capital inflows, which contributed to the earlier strong upward momentum. However, despite the recent pullback, trading volume remains active, showing increased selling pressure at higher levels. More importantly, rebounds have not been accompanied by renewed significant volume, suggesting short-term capital sentiment has begun to turn cautious. When a stock sees strong buying interest during rallies and heavy trading during declines but lacks notable volume during subsequent rebounds, it can easily result in high-level turnover followed by a gradual testing of support levels.
Huahong’s current risk-reward ratio is neutral—it hasn’t completely turned bearish, but it no longer exhibits the previous strong buying pattern. In the short term, attention should focus on whether the 113.600-yuan support can hold steady, as this will be the first test to determine if the correction is under control. If it holds, the stock price may still rebound to test 120 to 122 yuan; a decisive break above and sustained hold above 122 yuan would signal a potential short-term strengthening, with the next resistance target being 128.620 yuan. Conversely, if 113.600 yuan fails, market attention will quickly shift toward the area around 109 yuan, where 110 yuan will become the next battleground between bulls and bears.
Overall, the most critical factor for Huahong Semiconductor now isn't whether the semiconductor concept remains hot, but whether 122 yuan can be reclaimed. The earlier strength attracted retail investors, but the stock price has now fallen below key short-term moving averages, with momentum cooling and the relative strength index dropping to around 37, indicating reduced market enthusiasm compared to before. If 122 yuan cannot be decisively broken through, risks remain for a retest of 113.600 yuan or even 109 yuan; only a volume-backed rise above 122 yuan would present a short-term opportunity for recovery. At this stage, the most reasonable strategy is to avoid chasing highs or blindly guessing bottoms, first observing the support at 113.600 yuan and the pivotal level at 122 yuan, and then deciding on direction after confirmation from both sides.
Latest update (May 19 morning):
Huahong Semiconductor is currently trading at 111 yuan, down approximately 4.15%, having broken below the first support level of 113.60 yuan, and is approaching the 109-110 yuan range. By comparison, SMIC is trading at approximately 67.80 yuan (down about 1.3%). This shows ongoing adjustment pressures in the semiconductor sector, with Huahong’s key support breached, and the scenario retail investors fear most—a retest of 110 yuan—is unfolding. In the short term, close attention must be paid to whether the stock can stabilize around 109 yuan.
Reply to some investors' views:
@股神-迈巴赫A rise to 150 yuan within a week represents an extremely aggressive forecast. In the short term, breaking through 122 yuan and 128.620 yuan is necessary before considering higher targets.
@願世界和平—The 122-yuan level is the watershed; if it cannot break through, the market will refocus on the 113.600 yuan or even the 109-yuan support level.
@FindyourStabilization is just the first step; true renewed strength depends on whether the stock can hold firm above 122 yuan.
Based on the above analysis, the strategies for deployment can be divided into the following main approaches:
Key deployment focus: For Huahong in the short term, watch whether the 113.600-yuan support holds. If it does, consider betting on a technical rebound; if 113.600 yuan is broken, it could test the area around 109 yuan. Only by breaking through and stabilizing above 122 yuan will there be a short-term opportunity to regain strength.
Strategy One | Hold firm above 113.600 yuan to bet on a technical rebound.
$UBHUAHO@EC2608A.C (24990.HK)$ ｜Strike Price 140.09｜Actual Leverage 4.4x｜The strike price is above the upper resistance zone, suitable for a rebound play if the stock price holds above 113.600, focusing on capturing initial elasticity as it stabilizes and moves toward 122.
$BIHUAHO@EC2607C.C (24321.HK)$ ｜Strike Price 127｜Actual Leverage 5.0x｜The strike price is close to the 122 watershed, with higher leverage, suitable for short-term confirmation of support holding before betting on the stock price retesting the 122 to 128.620 range.
$BIHUAHO@EC2607B.C (24178.HK)$ ｜Strike Price 116.88｜Actual Leverage 4.5x｜The strike price is near the current price, more suited for defensive rebound setups; applicable when the stock price stabilizes around 113.600 but lacks immediate momentum to break through.
Strategy Two｜Break above 122 to chase strength.
$UBHUAHO@EC2608A.C (24990.HK)$ ｜Strike Price 140.09｜Actual Leverage 4.4x｜The strike price is above the 128.620 resistance level, suitable for chasing a rebound continuation after breaking above 122, with product elasticity better suited for capturing the second leg of upside after the breakout.
$BPHUAHO@EC2607B.C (25035.HK)$ ｜Strike Price 150｜Actual Leverage 5.1x｜Higher strike price offers greater elasticity, ideal for use when the stock clearly breaks through 122 with trading volume support; not suitable for premature deployment before the breakout.
$CIHUAHO@EC2608B.C (24560.HK)$ ｜Strike Price 140.08｜Actual Leverage 4.6x｜The strike price is close to the extended target zone above, suitable for chasing momentum post-breakout without using excessively high strike price products, positioned between stable momentum-chasing and high-elasticity momentum-chasing.
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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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