To The Moon

After rallying 290% this year to a new record high of HKD 335.40 on 26 August, $POP MART(09992)$ shares have pulled back 32.1% to its closing level of HKD 227.60 on Tues 28 October. Does this spell the end of Pop Mart’s incredible share price run this year? Or is it trading near a short-term support level? SGX Academy Trainer Binni Ong offers her view:

*This post is sponsored by Macquarie Warrants Singapore. Binni’s view does not represent that of Macquarie’s

• Pop Mart is a leading designer toy company best known for its blind box products and popular character series such as Labubu.

• The stock has recently attracted attention after forming a head and shoulder pattern, a formation that typically suggests a potential trend reversal following an extended uptrend.

• Support: Price is currently near HK$230, a key support level that has held over recent sessions.

• Resistance: The immediate resistance lies around HK$252, where previous rebounds have met selling pressure.

• Moving averages: Shorter-term EMAs have started to slope downward, indicating slowing upside momentum.

Implication of the Head and Shoulder Pattern ​​​​​​​

• A decisive close below HK$230 would confirm the head and shoulders breakdown.

• The projected target is calculated from the head (HK$340) to the neckline (HK$230):

• Difference = HK$110

• Target = 230 − 110 = HK$120 (approximate downside projection).

• However, intermediate supports at HK$200 and HK$170 could offer potential technical pauses or areas of buying interest before that level.

Using Structured Warrants for Short-Term Trading ​​​​​​​

Call warrants such as $PopMart MB eCW260303(PMPW.SI)$ (https://warrants.com.sg/tools/livematrix/PMPW)  traders expecting a bounce from the HK$230 support zone or a breakout above HK$252 for short-term upside momentum.

Put warrants such as $PopMart MB ePW260203(NSCW.SI)$ (https://warrants.com.sg/tools/livematrix/NSCW) may be considered if price fails to hold above HK$230 or faces repeated rejection near HK$252.

Note: The featured call or put warrant is one of the warrants quoted on tight spreads and high liquidity. They are also known as trending warrants.

DISCLAIMER

Information found in Binni Ong commentary is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. She is providing education and training, and is not regulated by the Monetary Authority of Singapore or any financial regulatory body.

This commentary piece is sponsored by Macquarie Warrants Singapore. The views expressed by Binni Ong do not represent the views of Macquarie Group, nor its affiliates.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Investment products including warrants are subject to significant investment risks, including the possible loss of the principal amount invested.

Where past performance is referred to, it is not indicative of future performance. Examples quoted in this presentation are for illustration purposes only and do not represent any investment views or strategies. Advice should be sought from a financial adviser regarding the suitability of the investment product before you commit to invest in it.