Group 1 - The automotive sector in Hong Kong showed divergence, with Great Wall Motors (02333) rising by 4.97% to HKD 19, but technical indicators suggest a potential short-term pullback due to overbought conditions [1][3] - The RSI indicator for Great Wall Motors reached an extremely high level of 87, indicating excessive buying pressure, while multiple oscillators issued "sell" signals, suggesting caution for investors [3][6] - Current support levels for Great Wall Motors are at HKD 16.2 and HKD 14.7, while resistance is seen at HKD 19, with a potential challenge at HKD 21.4 if the stock breaks through [1][6] Group 2 - Derivative investors are advised to be cautious, with UBS call option 13608 offering a strike price of HKD 18.82 and a leverage of 4.8 times, while HSBC call option 13606 provides 5 times leverage [6][9] - Recent performance of leveraged products has been strong, with UBS and HSBC call options showing a 36% increase over two days, outperforming the underlying stock's 7.28% rise [3][6] - The extreme divergence in technical indicators necessitates heightened vigilance among investors, as the market may be approaching a correction phase [3][6]

Core Viewpoint - Luoyang Molybdenum (03993.HK) has shown a strong upward trend, with a recent high of 12.13 HKD, but technical indicators suggest a potential for short-term correction due to overbought conditions indicated by an RSI of 86 [1][3]. Technical Analysis - The stock price has risen from a low of 7.75 HKD to a recent high of 12.13 HKD, indicating a bullish trend [1]. - Key resistance levels are identified at 12.5 HKD and 13.6 HKD, while support levels are at 10.8 HKD and 10 HKD [1]. - The stock is currently above all major moving averages, but the RSI indicates overbought conditions, suggesting caution for investors [1][3]. Derivative Products - Investors are advised to consider specific call options such as the Bank of China call option 18700 with a strike price of 11.13 HKD, offering 3.2x leverage, and the call option 18217 with a strike price of 11 HKD, also providing 3.2x leverage [6]. - The performance of leveraged products has been strong, with notable gains in recent recommendations, highlighting their potential for significant returns in bullish markets [3][6]. Market Sentiment - There is a mixed sentiment among investors regarding the potential for a deep correction following the overbought RSI level, with some believing that the strong momentum could continue to push the stock past the 12.5 HKD resistance [9].

Group 1 - The core viewpoint indicates that Great Wall Motors (02333.HK) has shown a strong rebound, breaking the resistance level of 17.86 and aiming for 20, with a current price of 18.4, reflecting a 2.28% increase [1][2] - Technical analysis shows that Great Wall Motors has broken through all major moving averages, with the 10-day moving average at 15.76 acting as immediate support, while the 30-day and 60-day moving averages provide strong support at 14.15 and 13.25 respectively [1][2] - The first resistance level is identified at 19.2, with a potential challenge to the second resistance at 21.5 if the first is surpassed [2] Group 2 - The RSI indicator has surged to 84, indicating an overbought condition and significant short-term adjustment pressure, while multiple oscillators show neutral signals [4] - Recent performance of call options has been impressive, with UBS call option 13608 recording a 26% increase and HSBC call option 13606 showing a 25% rise, significantly outperforming the underlying stock's 5.2% increase [4] - Investors are advised to consider HSBC call option 13606 and UBS call option 13608, both with a strike price of 18.82 and offering a leverage of 4.8 times, as suitable options for bullish investors [7]

Core Viewpoint - The automotive sector in Hong Kong is experiencing increased volatility, with Great Wall Motors (02333) showing notable price movements and technical indicators suggesting potential short-term adjustments [1][3]. Technical Analysis - Great Wall Motors' stock price reached HKD 17.76, up 5.21%, indicating strong recent performance but also showing clear overbought signals [1]. - The stock is at a critical technical turning point, remaining above all major moving averages, with the 10-day moving average at HKD 15.34 providing recent support [1]. - Key support levels are identified at HKD 15.2 and HKD 13.6, while resistance is seen at HKD 18.3, with a potential challenge of HKD 20.2 if the upper resistance is breached [1]. - The current price is only 8.3% away from recent highs, while there is a 10% adjustment space to the first support level, necessitating careful risk-reward assessment [1]. Overbought Signals - Technical indicators show significant overbought conditions, with the RSI reaching 84, indicating substantial short-term adjustment pressure [3]. - Multiple oscillators are signaling sell conditions, with the Williams and stochastic indicators also reflecting overbought status [3]. - Momentum indicators are suggesting a "sell" signal, reinforcing the caution for investors regarding potential short-term pullbacks [3]. Derivative Products - Investors looking for opportunities in derivatives can consider UBS call warrant 13608, with a strike price of HKD 18.82 and a leverage of 5.1 times [5]. - Another option is HSBC call warrant 13606, also with a strike price of HKD 18.82, offering a leverage of 5.2 times, which is among the higher leverage options [5]. - JPMorgan call warrant 14482 provides a leverage of 4.9 times, with a premium of 15.63% and an implied volatility of 60.65%, suitable for investors optimistic about future market performance but wanting to manage premium costs [5].

Core Viewpoint - Hong Kong Stock Exchange (HKEX) shows a stable upward trend, with the stock price reaching 401.2 HKD, reflecting a 1.42% increase, and technical indicators suggest a potential for further gains despite being in the overbought zone [1][9]. Technical Analysis - The stock price has broken through all major moving averages, with the 10-day moving average at 393.4 HKD and the 30-day moving average at 372.1 HKD indicating a bullish alignment [1]. - The MACD indicator remains in a golden cross state, suggesting a strengthening mid-term trend [1]. - The RSI has reached 70, indicating an overbought condition, and the upper Bollinger Band is at 406 HKD, which coincides with current resistance levels, suggesting a possible short-term technical adjustment [1]. - Key support levels are identified at 384 HKD and a stronger support at 360 HKD, while resistance is seen at 406 HKD, with a potential challenge at 418 HKD if broken [1]. Derivative Products Performance - Recent trading data from June 2 to June 4 shows that while HKEX's stock rose by 0.66%, related derivative products exhibited varying degrees of leverage effects, particularly bull certificates [3]. - HSBC bull certificate 53712 increased by 11% over two days, while Societe Generale bull certificate 54739 rose by 10%, highlighting the advantages of bull certificates in a moderate upward market [3][4]. - Call options such as Barclays call option 27807 and HSBC call option 29547 recorded an 8% increase, demonstrating significant leverage effects [4]. Investment Strategies - For bullish investors, HSBC call option 29547 offers a leverage of 8.9 times with a strike price of 450.2 HKD, while Barclays call option 27807 provides a leverage of 9 times with a strike price of 450 HKD, both suitable for medium-term holding [6]. - For bearish investors, HSBC put option 16951 offers a leverage of 9.4 times with a strike price of 333.68 HKD, and UBS put option 16913 provides a leverage of 9 times with the same strike price, both having the lowest premiums and implied volatilities [7]. - UBS bear certificate 52551 has a leverage of 16.2 times with a recovery price of 420 HKD, while JPMorgan bear certificate 53686 offers a leverage of 15.9 times, suitable for bearish market conditions [7].