Pop Mart At All Time High – Calculated Technical Target at 339

Pop Mart ( $POP MART(09992)$ ) Chart Analysis

Cup and handle pattern breakout

Breakout to all-time high:

• The recent breakout in POP MART was supported by strong interim results, highlighting robust revenue growth and profitability.

• Analyst upgrades and optimism that the company could become a candidate for Hang Seng Index inclusion further boosted sentiment. (Source: https://www.aastocks.com/en/stocks/news/aafn-con/NOW.1462558/popular-news/AAFN?)

• These fundamental catalysts provided the momentum that aligned with the bullish technical setup.

Cup and Handle Pattern:

• The chart illustrates a classic cup and handle formation, a bullish continuation pattern

• Cup: Formed between 235 and 287, creating a base structure.

• Handle: Short consolidation before the breakout.

• Breakout: Confirmed once price pushed above the 287 resistance level.

Projected Target:

• Cup depth = 287 – 235 = 52 points.

• Add this depth to breakout level (287).

• Projected target = ~339.

At the time of writing, Pop Mart is trading at HKD317.40

Using Structured Warrants for Short-Term Trading

Call warrants such as PopMart MB eCW251104 ( $PopMart MB eCW251104(XY5W.SI)$ ) (https://warrants.com.sg/tools/livematrix/XY5W) may be considered to express a bullish view if price holds above HKD300 to move towards project resistance HKD339.

Put warrants such as PopMart MB ePW251104 ( $PopMart MB ePW251104(KBNW.SI)$ ) (https://warrants.com.sg/tools/livematrix/KBNW)  may be used to express a bearish view if if the breakout fails and price falls back below HKD287.

Note: The featured call and put warrants are warrants quoted on tight spreads and high liquidity. They are also known as trending warrants. 

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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.

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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.