SMIC has entered a phase of consolidation with a bullish bias, awaiting a breakout; 60.40 yuan is the key resistance level.
SMIC's recent performance has continued to improve. After rebounding from the low of 49.320 yuan, the stock price has steadily recovered. At the current price of 58.95 yuan, it has moved back near the 5-day, 10-day, and 20-day moving averages, showing significantly more stability in the short-term structure compared to before. From investor comments, overall market sentiment leans bullish, with many believing the stock remains on an upward trajectory supported by capital inflows, large buy orders, and southbound capital movements. However, some comments caution against chasing highs, fearing potential profit-taking or pullbacks after a rise, reflecting that while the market is bullish, there is still notable caution about resistance around 60 yuan.
Technically, SMIC at its current price of 58.95 yuan is approaching the resistance zone between 60 and 60.40 yuan, while also nearing the upper Bollinger Band, indicating that the uptrend remains intact but upward pressure is beginning to build. The Relative Strength Index (RSI) has risen above 68, reflecting strong short-term momentum without being extremely overheated. The midline of the Bollinger Bands stands at 55.903, with the current price notably higher than this midline, suggesting structural improvement. However, compared to earlier lows, the upside potential for entering new positions at this stage has visibly narrowed.
Comment focus is primarily centered around three directions. First, many investors believe that SMIC’s current phase represents a continuation of a rebound following a bottom formation, not merely a bull trap, and there are still opportunities for upward movement. Second, some investors worry that after reaching the resistance zone, the stock may first pull back for consolidation before deciding its next direction. Third, the market is highly sensitive to fund flows, whether they involve large buy orders, southbound capital inflows, or major players staying on the sidelines, all becoming important factors for investors judging short-term trends.
Based on common questions, the market is currently most focused on whether the 60.40 resistance can be broken, whether the pivotal level of 59.300 can hold, and whether one should chase the current price or wait for a pullback before taking action. These questions reflect that SMIC is no longer in a weak consolidation phase but has entered a period of consolidation with a bullish bias, awaiting a breakout.
The key to future performance lies between 59.300 and 60.400. If the stock price can stabilize above 59.300 and break through 60.400, there is potential for a short-term test of 62.046, which could further strengthen market sentiment. Conversely, if repeated resistance occurs near 60 yuan and 59.300 fails to hold, attention should be paid to a possible retest of support around 58.370. Overall, SMIC’s current trend is bullish, but as it approaches the resistance zone, it would be better to wait for a confirmed breakout or look for better risk-reward entry points after a pullback.
Reply to market investor comments:
@Hua Hong Niu Niu@華虹牛牛The trend is upward, don't believe in a sharp decline anymore, get onboard quickly.
The overall structure has indeed improved compared to before, but the current position is no longer low. Deployment still depends on whether resistance can be broken.
@Mountaintop Capital's Loss-Making KingInstitutional investors are observing at this price level.
The area around $60 does seem like a market observation zone; breaking through or not will directly affect short-term direction.
@Shen, hit the road!@申手上路For now, it seems to be moving sideways; better to observe for a few more days.
It is indeed close to a sideways consolidation phase currently. The key is whether the resistance zone can be broken through; observing is reasonable.
SMIC (00981) Key Focus: $59.300 is the short-term watershed. If it holds firm, a rebound continuation may be seen. Breaking through $60.400 could lead to testing $62.046. If $59.300 is breached, be cautious of a retest of support near $58.370.
Strategy One | Hold firm at 59.300, target a continued rebound
19093 | Strike price 62.93 | Actual leverage 4.6x | Close to current price, suitable for holding steady support and following an initial recovery uptrend with a more direct response
27867 | Strike price 55.93 | Actual leverage 4.1x | A closer-price strategy, suitable for controlling time decay while retaining upside participation
18978 | Strike price 62.88 | Actual leverage 4.4x | Balanced terms, suitable for gradual progress once the stock price stabilizes above 60
Strategy Two | Break through 60.400, chase upward towards 62.046
19343 | Strike price 69.04 | Actual leverage 5.3x | Better elasticity after a breakout, suitable for chasing upward momentum to amplify short-term gains
19350 | Strike price 69.04 | Actual leverage 4.8x | Also a medium-short term aggressive play, but with steadier momentum, suitable for following the trend after confirming a breakout
27769 | Strike price 77.88 | Actual leverage 5.0x | Higher out-of-the-money level, suitable for aggressive plays when there is confirmation of a true breakout with capital inflow
Strategy Three | If 59.300 fails to hold, reverse position targeting a retest at 58.370
21090 | Strike price 62.81 | Actual leverage 4.6x | After failing to hold the critical level, can reverse position immediately; better suited for capturing short-term pullbacks
15954 | Strike price 62.76 | Actual leverage 4.9x | Leverage is slightly high, suitable for accelerating the capture of pullbacks after a breakdown, allowing for a more proactive trading rhythm.
19851 | Strike price 49.79 | Actual leverage 5.6x | The most aggressive among the three, suitable for pursuing short-selling after confirming weakness, aiming to capitalize on an expanded pullback.
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 analyses contained herein may change at any time without prior notice. We are not responsible for any losses or damages caused by reliance on the information in this article. Technical analysis only indicates whether certain technical conditions are met and should be used alongside other data for a comprehensive assessment of asset performance; trading decisions should not be made solely based on this article. Note that past performance is not indicative of future results. Follow Jenny’s HK warrants for more professional insights. $Hang Seng Index (800000.HK)$$Hang Seng TECH Index (800700.HK)$$Hang Seng China Enterprises Index (800100.HK)$
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