HSBC HOLDINGS(HK:00005) Ge Long Hui·2026-01-20 14:29Core Viewpoint - HSBC Holdings (00005.HK) has entered a critical adjustment and consolidation phase after reaching a peak price of approximately 130 HKD, with the market cautiously evaluating the tension between short-term technical trends and long-term fundamental value [1]. Technical Analysis - HSBC's stock price failed to maintain its upward momentum after hitting around 130 HKD in early January, adjusting to close at 127 HKD on January 19, indicating a pessimistic short-term outlook [1]. - The stock is currently testing key technical support levels, with the 10-day moving average at approximately 124.29 HKD and the 50-day moving average at 113.58 HKD, suggesting a weakening short-term upward momentum [1]. - Divergent market signals increase uncertainty in the short-term trend, with the Relative Strength Index (RSI-14) at 63, indicating a strong area but showing a decline from its peak [3]. - The first critical support level is at 123.1 HKD, while a stronger second support level is between 118-118.9 HKD, which is significant for technical analysis [3]. Derivative Products Review and Strategy Value - Recent performance in the derivatives market shows that leveraged effects can amplify investment returns during clear but moderate directional movements in the underlying stock [4]. - For investors confident in long-term value and expecting a rebound post-adjustment, call options with strike prices near upper resistance levels are recommended, while put options are suggested for those anticipating deeper corrections [6]. Current Market Derivative Tool Deployment Thoughts - Investors should carefully select products with terms closely tied to key support and resistance levels, adhering strictly to risk control disciplines [6]. - For bullish investors, choosing bull certificates with recovery prices significantly below key technical support levels is advisable, while bearish investors should select bear certificates with recovery prices above key resistance levels [11]. High Leverage Traps and Expiry Date Risks - A common misconception highlighted is the attraction to high leverage without considering expiry dates, as short-term options can suffer rapid time value decay, leading to potential losses even if the stock moves in the right direction [14].