To The Moon

• Semiconductor Manufacturing International Corporation ( $SMIC(00981)$ ) is China’s largest and most advanced semiconductor foundry. The company provides integrated circuit (IC) manufacturing services to global and domestic clients, covering process technologies from mature nodes such as 55 nm and 40 nm to advanced nodes such as 14 nm. (Source: https://www.smics.com/en/site/about_summary)  

• SMIC plays a strategic role in China’s semiconductor self-sufficiency drive, making it a key name for investors seeking exposure to the semiconductor manufacturing segment listed on HKEX. (Source: https://www.scmp.com/tech) 

Technical Overview of SMIC

• SMIC remains in an uptrend, as reflected by the 20-, 50-, 100-, and 200-day exponential moving averages (EMA) that are still trending higher.

• The stock is currently trading within a range between support at $68.60 and resistance around $85.

• The $68.60 zone is a key near-term support level. If prices stay above this level, the uptrend structure remains intact.

• However, a break below $68.60 could signal a potential reversal in the short-term trend, especially as the chart has formed a lower high, suggesting some weakness in momentum.

• Should this support fail, the next stronger support lies near $60, which also coincides with a previous consolidation zone.

For now, the price action suggests consolidation within the $68.60–$85 range, and traders may continue to monitor whether SMIC holds its support or confirms a reversal.

Using Structured Warrants for Short-Term Trading

• If the price continues to hold above HK$68.60-HK$70.00 and shows upward momentum, investors who expect further strength may look at call warrants (SMIC MB eCW260402 ( $SMIC MB eCW260402(NAAW.SI)$ )) (https://warrants.com.sg/tools/livematrix/NAAW) to gain leveraged exposure to short-term upside.

• If the price breaks below HK$68.60, put warrants (SMIC MB ePW260203 ( $SMIC MB ePW260203(ONUW.SI)$ )) (https://warrants.com.sg/tools/livematrix/ONUW) may be relevant for expressing a bearish short-term view.

• Structured warrants are short-term trading instruments that magnify both gains and losses; their value is affected by the underlying price, volatility, and time to expiry.

• 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.