To The Moon

Goldman Sachs has identified key AI theme stocks in China, focusing on sectors like Data & Cloud, Software, and Semiconductors. Meituan $MEITUAN-W(03690)$ , while included in the Software & Applications category, is not in the top tier of AI and Cloud, which explains its lagging price movement.

Meituan Technical Analysis

• Overall Trend: The stock remains in a long-term downtrend, as shown by the continuous decline from its previous highs.

• Recent Price Movement: A short-term uptrend is forming, with higher highs and higher lows, suggesting bullish momentum.

• Key Levels: Immediate Resistance: HKD 180 – A close above this level is needed to confirm a pause in the correction and strengthen the reversal case.

• Stronger Resistance: HKD 211 – The recent high and a key level to watch for a potential breakout.

• Correction Phase: After a strong rally, the stock has entered a correction phase, testing higher low support zones.

• Confirmation Needed: If the price fails to break 180, the downtrend could resume. A sustained move above 211 would signal a more significant trend reversal.

Conclusion: While recent price action shows signs of recovery, Meituan is still in a broader downtrend. Bulls need to reclaim 180 first, with 211 as the next major hurdle.

Trading Meituan Using Daily Leverage Certificates (DLCs)

Daily Leverage Certificates (DLCs) allow traders to gain leveraged exposure to Meituan’s price movements. Here's how you can trade Meituan using DLCs:

Choosing the Right DLC

• Long DLCs: If you expect Meituan to rise, buy a long DLC (e.g., Meituan 5x Long DLC $Meituan 5xLongSG250924(NUGW.SI)$ ).

• Short DLCs: If you expect Meituan to fall, buy a short DLC (e.g., Meituan 5x Short DLC $Meituan 5xShortSG260513(96KW.SI)$ ).

• DLCs typically offer 3x, 5x, or 7x leverage, meaning your gains (or losses) are multiplied by that factor.

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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.