Hello everyone, this week's 【Technology Tracking】 will analyze this year's most popular and controversial star technology company - $XIAOMI-W(01810.HK)$ 。

Hot Events

On the evening of May 22, $XIAOMI-W(01810.HK)$ multiple new products were launched, including the Xuanyuan O1 chip, along with Xiaomi's 15s pro smartphone and the Xiaomi Pad 7 Ultra powered by the Xuanyuan O1 chip, as well as the long-awaited first fully electric SUV "Xiaomi YU7".

It must be said that Xiaomi is truly "quietly achieving great things." The emergence and mass production of the Xuanyuan O1 chip once again demonstrates its underlying hardware development capabilities, which may accelerate the differentiation in the competition landscape of the domestic high-end smartphone market and become one of the core logic behind Xiaomi's valuation growth. Self-developed chips not only help reduce dependence on the supply chain but also enable breakthroughs in mobile performance and power consumption through deep collaboration between software and hardware, such as in image processing and AI computing power in key scenarios, which is the crucial factor for achieving breakthroughs in future high-end models.

Additionally, the first SUV model YU7 is also impressive, positioned as a luxury high-performance SUV with a driving assistance chip capable of 700 TOPS and standard laser radar across the entire range; pricing is aligned with the Tesla Model Y, though the actual selling price will not be announced until July.

In fact, just a few days before the YU7 launch, there were large-scale online attacks questioning its quality issues; and a collision incident involving the SU7 at the end of March severely damaged Xiaomi's brand image, leading to a heavy hit on its stock price. With the appearance of these new products, the market has received positive feedback, combined with the upcoming Q1 performance, is it possible for Xiaomi's stock price to return to its peak?

Technical Analysis

Trend Analysis

From the weekly chart, since the release of the SU7 in March 2024, Xiaomi's stock price entered a strong upward phase, reaching a new high of 59.45 yuan; until March 2025, when a major Transportation accident involving a SU7 owner led to a reversal of Xiaomi's reputation, combined with the impact of the tariff war, the stock price fell back to 36 yuan, a retracement of about 40%. On May 20, Xiaomi announced the release time of new chips and cars, and the stock price immediately surged by 4.68%, showing potential to reach a new high.

From the daily chart, observe the EMA12 and 50 Trendlines, the stock price shows a good upward trend, and in the short term, the EMA50 moving average can be referenced as a support level, with a reference price of 48.6 Hong Kong dollars. Between May 6 and 20, the stock price formed a "Three White Soldiers" Candlestick pattern, which is considered a short-term bullish pattern. Generally, the "Three White Soldiers" appears at the bottom of a downtrend, and the three bullish candle bodies are of similar size, with each candle's closing price being higher than the previous day's closing price. It is worth noting that the "Three White Soldiers" can also appear during a consolidation phase in an uptrend, such as the recent performance of Xiaomi, indicating a possible upward momentum.

Indicator interpretation.

• Combining Fibonacci Trendlines, assess the potential resistance levels and Target Prices for this wave of the market. The first Target Price worth noting is around the 50% extension level, corresponding to a stock price of 56.89%; the second Target Price is near the 61.8% extension level, corresponding to a stock price of 61.82, exceeding the previous high of 59.45, where there may be significant resistance.

• From the perspective of MACD, the MACD Indicators generally align with the stock price trend and currently remain above the zero axis, indicating that the medium-term trend is still bullish.

• From the RSI perspective, the current RSI has broken through 60; although it has not yet entered the 70 overbought zone, caution is needed regarding short-term pullback pressure.

Focus Direction

In summary, Xiaomi is still in an upward trend, benefiting in the short term from the favorable release of new products, with potential for a rise in stock price. The EMA50 moving average can currently be referenced as a support level, and the Target Price can be combined with Fibonacci Trendlines, referencing stock prices around the 50% and 61.8% extension levels.

Finally, it is important to note that the task of technical analysis tools has its limitations, and investors should not rely excessively on them.

Mooers who are interested can also use Futubull AI to assist us in making trading decisions. For example, after the release of Xiaomi's new products, we can ask Futubull AI to organize relevant news for us and provide some practical technical analysis investment strategies.

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