Technical Analysis on $KUAISHOU-W(01024)$
Breakout from a Long-Term Range
Kuaishou traded within a well-defined range for approximately one year, fluctuating between 38.40 HKD (support) and 62.25 HKD (resistance). This prolonged sideways movement indicated indecision, with buyers and sellers keeping price contained within this zone.
Significance of the Weekly Close Above Resistance
A weekly close above 62.25 HKD, the highest level of the range, signals potential strength. Weekly breakouts hold more weight than daily closes, as they suggest sustained buying pressure rather than short-term spikes. If buyers maintain control, this breakout could lead to further upside movement.
Projected Target Based on Range Height
The height of the previous range is approximately 23.85 HKD (62.25 - 38.40). Using this as a breakout measurement:
62.25 + 23.85 = 86.10 HKD
This projects a potential upside target of 86.10 HKD, which could serve as a key profit-taking level, apart from other resistance zones.
Key Resistance Levels to Watch
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72.50 HKD: A prior resistance level where price previously stalled.
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80.85 HKD: Another major resistance, which historically rejected price advances.
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86.10 HKD: The breakout target based on the range height, which could act as a longer-term price objective.
If price continues higher, traders will be watching how it reacts at these levels to assess whether the breakout has further momentum.
Using DLCs for Trading This Pattern
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Bullish Scenario: If price stays above 62.25 HKD, traders could consider Long DLCs ( $Kuaisho 5xLongSG261217(VLLW.SI)$ to target 72.50 HKD, 80.85 HKD, and potentially 86.10 HKD.
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Bearish Scenario: If price fails to hold above 62.25 HKD and re-enters the range, Short DLCs ( $Kuaisho 5xShortSG260908(XN7W.SI)$ could be used to capture a potential retracement toward lower support levels.
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Disclaimer:
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