According to the latest technical analysis, Xiaomi's stock has a 50% probability of an upside move. The relative strength index (RSI) is at 61.1, with three bullish indicators and five bearish indicators. Xiaomi's short-term support level is at 26.8, while the resistance level is at 29.2. If it breaks above 29.2, further upside potential could open up, with the next target being 29.9. However, if it falls below 26.8, the next support level would be 26.
Some investors believe Xiaomi is in a "news vacuum" ahead of the launch of its SUV next year, suggesting the stock may consolidate further in the short term. Others argue that Xiaomi's trend shows a triple top formation, which could indicate upcoming gradual declines.
For those optimistic about Xiaomi, call warrants like JP Morgan's 28204 (strike price 31.31, leverage 5.81x, expiry April 25, 2025) or UBS's 28278 (strike price 31.88, leverage 6.16x, expiry April 3, 2025) might be worth considering. On the bearish side, put warrants with a strike price around 23, such as JP Morgan's 28894 or UBS's 28977 (leverage 5.26x and 5.55x, expiry May 2025), could be viable options.
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