To The Moon

China's State Council has announced a "special action plan" to boost domestic consumption, aiming to increase residents' income and introduce childcare subsidies.

This initiative is expected to enhance consumer spending, benefiting companies like $MEITUAN-W(03690)$ , a leading food delivery and local services platform. By increasing disposable income, more consumers may utilize Meituan's services, potentially driving revenue growth.

Technical Analysis of Meituan (HKEX: 3690)

Uptrend Within an Equidistant Channel

• Trend Continuation: Meituan's stock has been trading within an equidistant channel, indicating a consistent uptrend.

• Support Levels: The lower boundary of the channel, around 163.5 HKD, has acted as strong support, reinforced by upward-sloping moving averages.

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Resistance Levels

• Immediate Resistance: The stock is approaching resistance at 179-180 HKD, aligning with the channel's mid-line and a horizontal resistance level.

• Next Target: A successful break above 180 HKD could see the stock move towards the upper channel boundary near 205 HKD.

Using DLCs for Short-Term Trading

• Bullish Trade Setup: Traders expecting a breakout above 180 HKD can use a long DLC (e.g $Meituan 5xLongSG251216(OZDW.SI)$ to amplify gains if Meituan rallies toward 205 HKD.

• Bearish Trade Setup: If resistance holds and the price rejects 180 HKD, a short DLC ( $Meituan 5xShortSG260513(96KW.SI)$ )could be used to profit from a potential pullback to 163.5 HKD.

Key Levels to Watch:

• Support: 163.5 HKD

• Resistance: 180 HKD, 205 HKD

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