To The Moon

CATL (Contemporary Amperex Technology Co.) ( $CATL(03750)$ ) – Technical Analysis

CATL is a major EV battery manufacturer, listed on both the Shenzhen Stock Exchange (SZSE) and Hong Kong Stock Exchange (HKEX).

The SZSE listing is its primary listing. It was later dual-listed in HKEX, offering global investors more access to the company’s shares.

SZSE Chart (Daily Timeframe)

• Price recently rebounded strongly from a multi-month base.

• It is now approaching a key resistance zone, marked by past price peaks around CNY288.

• The rally has been steep, and momentum is strong — but the zone ahead may present technical resistance.

HKEX Chart (60-min)

• On the HKEX 60-min chart above, price has broken above the HKD395 resistance, showing bullish momentum.

• Immediate resistance is seen near HKD434.8, which is a recent high. This price was made when the SZSE-listed share hit a high of CNY288.

• In the event of a retracement, the 395 level may act as support, as it was a prior resistance level.

Using Structured Warrants for Short-Term Trading

Warrants can magnify the moves in a stock while requiring lesser capital.

Call warrant CATL MBeCW 260105 (RMWW) ( $CATL MBeCW 260105(RMWW.SI)$ ) may be used to express a bullish view if the HK price continues to hold above HKD395 or break above HKD434.8 resistance. The warrant is up 126.4% since its 8 July listing day, compared to CATL’s 19.4% gain over the same period.

Source: Historical performance of RMWW, https://warrants.com.sg/tools/HistoricalPerformance/RMWW

Put warrant CATL MBePW 260105  (FXEW) ( $CATL MBePW 260105(FXEW.SI)$ ) may be used to express a bearish view if price falls back below HKD395, which could signal a short-term pullback. Put warrants gain when the stock price increases and vice versa.

Source: Historical performance of FXEW, https://warrants.com.sg/tools/HistoricalPerformance/FXEW

Note that the magnified returns can work both ways, as seen in $CATL MBePW 260105(FXEW.SI)$ which is down 34.9%, more than CATL’s share price increase of 19.3%.

* The featured call and put warrants are warrants quoted on tight spreads and high liquidity. They are also known as trending warrants.

DISCLAIMER

Information found in Binni Ong commentary is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. She is providing education and training, and is not regulated by the Monetary Authority of Singapore or any financial regulatory body.

 This commentary piece is sponsored by Macquarie Warrants Singapore. The views expressed by Binni Ong do not represent the views of Macquarie Group, nor its affiliates.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Investment products including warrants are subject to significant investment risks, including the possible loss of the principal amount invested.

Where past performance is referred to, it is not indicative of future performance. Examples quoted in this presentation are for illustration purposes only and do not represent any investment views or strategies. Advice should be sought from a financial adviser regarding the suitability of the investment product before you commit to invest in it.