Technical Analysis – Xiaomi Corporation ( $XIAOMI-W(01810)$ )
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Recent Price Action:
Xiaomi recently experienced a strong rally, followed by a sharp pullback.
Price peaked near HK$60 before correcting sharply to current levels around HK$42.
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Resistance Zone turns support:
The red line at ~HK$36 marks the previous all-time high (from early 2021).
Price has now retested this level, showing signs of buying interest around previous resistance turned support.
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Volume:
Volume has spiked significantly during the recent move, indicating heightened investor activity and strong participation in the breakout and pullback.
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Momentum:
RSI recently pulled back from overbought territory (~78), currently around ~40, reflecting cooling momentum.
The drop below the moving average on RSI may indicate a short-term loss of bullish momentum.
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Structure:
Price structure has formed a parabolic rise, followed by a sharp retracement.
The return to the HK$36 area could be a technical retest of a key breakout level.
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Candle Behavior:
Weekly candle shows a long lower wick around HK$36, which may imply buying interest at support, but the overall candle remains bearish.
Xiaomi short term trading
If support around the HK$36 level is firmed, long DLCs (Daily Leverage Certificates) will increase in price, as they are designed to move in the same direction as the underlying stock with leverage. (e.g. $Xiaomi 5xLongSG251113(DKRW.SI)$ )
Conversely, if Xiaomi breaks below this support and continues to fall, short DLCs (e.g. $Xiaomi 5xShortSG260908(SLRW.SI)$ )will rise in value since they move inversely to the stock's price. This dual structure allows traders to take positions based on short-term bullish or bearish views, depending on how the price reacts around key levels like HK$36.
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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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