Recently, I have been posting about Hong Kong Stock Market.
The wind is blowing to China EV stocks.
Was shopping for EV cars and EV stocks!!
Earlier posted on Geely here 4 days ago. Check out the post if you have not. $GEELY AUTO(00175)$ is trading 17.90 today, up $2.14 from the time of posting. Geely DLC is up approximately 50% trading at $1.025 now.
Today this article will talk about my prediction on Geely movement and recap the performance of its DLCs.
Technical Analysis on Geely movement
Breakout of Upsloping Channel
The most significant development on the chart is the breakout above the upper resistance line of the upsloping channel. This breakout occurs today, with the price moving above HKD 17.88 , as indicated by the yellow arrow pointing upwards.
What Does This Breakout Mean?
A breakout above resistance often signals increased bullish momentum and suggests that buyers are gaining control.
It could indicate the start of a new phase of upward movement, potentially leading to higher price targets.
Supporting Evidence for the Breakout
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Increased volume during the breakout is a strong confirmation signal. Higher trading volume indicates stronger buying pressure, reinforcing the likelihood of a sustained upward move.
Potential Price Targets
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Measured Move Technique: The height of the channel (difference between support and resistance) can be added to the breakout level to project the next target.
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Height of the channel: ~HKD 3.50 (from HKD 14 to HKD 17.50).
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Breakout level: ~HKD 17.88.
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Potential Target: HKD 17.88 + HKD 3.50 = HKD 21.38 .
Note that there is a near-term resistance around HKD18.90-19.20. This level is a very strong resistance level too.
If you had traded on Geely earlier…
Analysis: Trading DRRW (5x Long Geely DLC) vs. Geely Stock
If a trader chose to trade $Geely 5xLongSG251113(DRRW.SI)$ instead of buying Geely's stock (0175.HK), they would have experienced amplified gains due to the leverage effect.
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Geely Stock Performance: Over the past 4 trading days, Geely's stock rose by +10.96% .
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DRRW Performance: As a 5x leveraged product , DRRW delivered a +52.18% return , which is close to 5 times Geely's gain.
Why the Difference?
The return isn't exactly 5x because:
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Daily Compounding: Leveraged products reset daily, so holding them for multiple days can lead to compounding effects that slightly reduce returns.
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Disclaimer:
This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only.
This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.
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