Core Viewpoint - Tencent is at a critical decision point with its stock price showing mixed signals from various technical indicators, indicating potential volatility in the near term [3][4][5]. Technical Analysis - The stock price is currently fluctuating around 518.5 HKD, with short-term support at 508.21 HKD (MA10) and 502.79 HKD (MA30), while the medium-term support is at 496.57 HKD (MA60) [3]. - Key support levels are identified at 499 HKD and 483 HKD, while resistance levels are at 531 HKD and 547 HKD [4]. - The stock has shown a volatility of 5.4% over five days, with a narrowing Bollinger Band indicating an impending breakout [4]. Short-term Trading Strategy - If the stock price stabilizes above 515 HKD and breaks through 531 HKD, it may trigger a new upward trend, suggesting the use of high-leverage bull certificates or near-price call options [5]. - Conversely, if the price falls below the 499 HKD support, investors should be cautious of potential pullback risks and consider deploying bear certificates or put options for hedging [5]. Performance of Derivative Products - From June 3 to June 5, Tencent's stock rose by 1.98%, positively impacting related derivative products, with UBS bull certificates surging by 33% and HSBC bull certificates increasing by 30% [6]. - Call options from UBS and JPMorgan also saw significant gains of 18% and 11%, respectively, highlighting the leverage effect of these products in a rising market [6]. Recommended Products - Among the current options, UBS call option 17137 offers a leverage of 11.1 times with a strike price of 563.5 HKD, suitable for bullish investors [7]. - For bearish positions, JPMorgan put option 15137 provides a leverage of 9.7 times with a strike price of 443.33 HKD, presenting a low premium for investors anticipating a downturn [7]. Popular Bull and Bear Certificates - HSBC bull certificates 67818 and 67820 offer leverage of 9.5 times and 8.8 times, respectively, with redemption prices set at 465 HKD and 460 HKD [10]. - For bearish strategies, Societe Generale bear certificate 58795 provides a high leverage of 17.8 times with a redemption price of 546 HKD, while JPMorgan bear certificate 58426 offers an even higher leverage of 20.2 times with a redemption price of 540 HKD [10].

Group 1 - Zhaojin Mining (01818) has shown strong recent performance, with technical indicators suggesting continued upward momentum in the short term. As of 11:30 AM, the latest price was HKD 20.15, up 2.7%, with the 10-day moving average (HKD 18.3) crossing above the 30-day moving average (HKD 18.01), forming a "golden cross" that reflects a positive short-term trend [1] - The Relative Strength Index (RSI) is at 67, nearing the overbought zone but not extreme, while the MACD shows a "buy" signal. The Bollinger Bands are expanding, indicating potential increased volatility. Key support levels are at HKD 18.6 and HKD 17.8, with resistance at HKD 20.9 and HKD 21.7. A breakthrough above HKD 20.9 could challenge higher levels [1] - The leverage effect of warrants has amplified returns, with Zhaojin Mining's stock price rising 8.76% on May 19, leading to significant gains in related warrants. Morgan Stanley's call option (27406) and UBS's call option (27337) recorded increases of 27% and 29%, respectively, exceeding the stock's rise by more than three times [4] Group 2 - Investors optimistic about Zhaojin Mining's potential to break through the HKD 20.9 resistance should consider longer-dated slightly out-of-the-money call options to balance time decay and leverage benefits. Current call options have varied terms, with exercise prices concentrated around HKD 18 and HKD 30. For instance, in-the-money products like Morgan Stanley's call option (27839) and UBS's call option (27337) have a leverage of 2.8 times, while out-of-the-money products have a leverage exceeding 3.3 times, with expiration dates in late November [7] - The market sentiment around Zhaojin Mining is influenced by strong gold prices and a robust technical outlook, although the RSI and Williams indicators are approaching overbought levels, raising questions about potential profit-taking in the short term. Investors are encouraged to share their strategies regarding whether to opt for warrants or directly purchase the underlying stock [10]