To The Moon

Xiaomi ( $XIAOMI-W(01810)$ ) – Pennant Within Cup & Handle

• Xiaomi has been forming a cup and handle pattern, often a bullish continuation setup.

• The handle has evolved into a pennant formation, with an initial breakout watch at HK$56.20.

• A stronger confirmation comes if price breaks above the previous high at HK$57, which would validate the cup and handle breakout.

• On the downside, support remains at HK$50, which is important for maintaining the bullish bias.

• Technical momentum indicators are stabilising, suggesting consolidation may turn into strength if HK$57 is cleared.

Implication:

• A breakout above HK$57 strengthens the pattern, projecting a measured target towards HK$70–75, based on the depth of the cup.

• Failure to hold above HK$56–57 could extend consolidation, while a breakdown below HK$50 would weaken the setup.

Using DLCs for Short-Term Trading

• Long DLCs ( $Xiaomi 5xLongSG270216(HPMW.SI)$ ): These are designed to benefit if the underlying stock continues upward. Traders may monitor whether Xiaomi sustains above HK$56–57, which could signal bullish continuation.

• Short DLCs ( $Xiaomi 5xShortSG261223(YW5W.SI)$ ): These are structured to gain if the underlying stock moves lower. They may be considered for hedging purposes if price fails at HK$56–57 or breaks below HK$50 support.

• Important Note: DLCs are leveraged, short-term instruments with daily compounding effects. Investors should be aware that losses can equal the full capital invested, and factors such as bid-ask spreads, volatility, and position sizing should be managed carefully.

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Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.