SMIC(HK:00981) Ge Long Hui·2025-07-23 13:25Core Viewpoint - Semiconductor company SMIC (中芯国际) shows positive technical indicators, with a current stock price of HKD 48.8, reflecting a 0.51% increase. The stock is above its 10-day and 30-day moving averages, indicating a favorable medium-term trend, although it is approaching overbought territory [1]. Technical Analysis - The stock price is currently supported at HKD 45.1, with a potential drop to HKD 42.4 if this support is broken. The key resistance level is at HKD 50.3, and a breakthrough could lead to testing HKD 53.3 [1]. - The MACD indicator shows a golden cross, while the Bollinger Bands indicate an upward trend. However, the RSI is at 68, nearing the overbought zone, suggesting a possible need for consolidation before testing the resistance at HKD 50.3 [1]. - Investors are optimistic about breaking the resistance at HKD 49, with some targeting HKD 53. The overall technical signals are summarized as "buy" [1]. Derivative Instruments - Recent performance of derivative products linked to SMIC shows significant leverage effects. For instance, a specific warrant from Societe Generale increased by 32% following a 3.08% rise in SMIC's stock price [4]. - Various warrants are available in the market, with Citigroup's warrant offering 5.5x leverage at an exercise price of HKD 52.55, and UBS's warrant providing 4.2x leverage at HKD 52.05 [7]. - Bear certificates are also available, with one from Societe Generale offering 12.4x leverage and a redemption price of HKD 52 [10]. Market Sentiment - The current market sentiment indicates active trading, with a 9.6% five-day volatility suggesting robust market engagement. The mixed signals from momentum oscillators indicate potential short-term fluctuations [1]. - Investors are considering whether to wait for a pullback to support levels or to follow through on potential breakouts, reflecting varying risk appetites in the semiconductor sector [13].