SMIC needs to break through 67.57 to test 68.2

SMIC is currently trading at 66.75 yuan, still above multiple short- and medium-term moving averages, with a relatively strong short-term trend. However, the current price is approaching the 120-day moving average at 67.566 and the upper Bollinger Band at 68.204, where upward resistance is beginning to increase. Technically, 64.570 serves as the short-term watershed; as long as this level holds, the strong structure remains intact. However, if it fails to break through 67.566, the risk-reward ratio of entering at the current level is not favorable.

Comments reflect clear polarization in sentiment. Some investors believe the gap has been filled, the pullback is healthy, and the third wave of the rally may be about to begin, while others expect the stock price to continue rising. On the other hand, some worry about weakness, a sharp drop, or impact from news, reflecting lingering caution about chasing highs in the market.

Common questions mainly focus on three points: First, whether the current price is still worth chasing; second, whether it will fall back again; third, whether news or earnings reports from Huahong will affect SMIC's trend. From a technical standpoint, SMIC is currently not in a low-risk buying position but is close to a resistance zone. If it can hold above 64.570 and break through 67.566, there would be potential to test 68.204. If it breaks below 64.570, then a retest of 63.097 should be monitored.

Market investor commentary:

@Niu NiuThe short-term trend remains relatively strong, but whether it continues depends on whether 67.566 can be broken.

@Ji Zhu Lian NaTo continue surging, it must first break through 67.566, then look toward 68.204.

@LeeksGrowTooHigh 48 is a relatively deep retracement target. Technically, it has not yet broken below 64.570 and confirmation is pending.

SMIC (00981) Key Strategy: Maintain strength above 64.570 to stay bullish; a break above 67.566 allows targeting 68.204; if it breaks below 64.570, watch for downside risk towards 63.097.

Strategy One | Bullish Deployment After Holding Above 64.570

23775 | Strike Price 72.86 | Actual Leverage 14.4x | Close to upper resistance, high elasticity, suitable for short-term rebounds after holding support firmly.

19350 | Strike Price 69.04 | Actual Leverage 4.6x | Strike price closer to current price, suitable for conservative rebound plays, not recommended for aggressive upside targets.

26787 | Strike Price 69.00 | Actual Leverage 4.6x | Near the 68.204 resistance zone, ideal for gradual breakout strategies with controlled volatility.

$BP-SMIC@EC2609A.C (26787.HK)$$UB-SMIC@EC2609A.C (19350.HK)$$UB-SMIC@EC2605B.C (23775.HK)$

Strategy Two | Momentum Play After Breaking Above 67.566

23775 | Strike Price 72.86 | Actual Leverage 14.4x | High-leverage momentum tool, suitable for capturing acceleration phases after confirmation of a breakout.

20322 | Strike Price 80.05 | Actual Leverage 11.8x | Higher strike price, greater elasticity, suitable for use alongside amplified trading volume post-breakout.

19974 | Strike price 72.81 | Actual leverage 11.3x | Between at-the-money and high elasticity, suitable for deployment after a breakout without choosing a strike price that is too far

$UB-SMIC@EC2605B.C (23775.HK)$$UB-SMIC@EC2606B.C (20322.HK)$$HS-SMIC@EC2605A.C (19974.HK)$

Strategy three | Deployment after a drop below 64.570

15954 | Strike price 62.76 | Actual leverage 6.7x | Close to lower support zone, suitable for betting on a rebound to 63.097 after dropping below 64.570

20320 | Strike price 52.45 | Actual leverage 7.0x | Higher strike price but still high leverage, suitable for shorting after the downtrend is confirmed; not advisable to use prematurely

19737 | Strike price 49.79 | Actual leverage 5.2x | Further out, suitable for bearish continuation trades expecting extended volatility

$UB-SMIC@EP2609B.P (19737.HK)$$UB-SMIC@EP2607A.P (20320.HK)$$UB-SMIC@EP2606A.P (15954.HK)$

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, 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 assessment of asset performance should combine other data and should not solely rely on this article to make trading decisions. Please note that past performance is not indicative of future results. Follow Jenny's insights on Hong Kong stock warrants for more professional analysis.

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