Xiaomi stock price stayed on the ascending trajectory on Tuesday, gaining 3.4% at the time of writing to trade at HKD 35.90. The stock’s upside was supported by Donald Trump’s perceived slow action on tariffs against goods imported into the United States from China on his inauguration day.
Hong Kong Stock Exchange CEO Bonnie Chan stated on Monday that the market in China would remain vigilant on potential changes in trade relations between the two nations. The benchmark Hong Kong Hang Seng closed Tuesday’s session at +0.9% as investors remained hopeful that China and the US could reach a compromise on trade relations.
Xiaomi stock price has risen by 3.1% year-to-date and is up by 16.9% in the last month as optimism builds on its electric vehicles (EV) market growth. The company sold 135,000 vehicles in 2024, exceeding its target of 130,000. In addition, Xiaomi (HKG: 1810) has a much higher target of 300,000 in 2025. However, its plans to venture into chip making could attract greater scrutiny by the US Government. That front is of particular concern due to potential national security implications.
Smartphones and electronics remain Xiaomi’s leading products, and those, too, could be included in Trump’s tariff bracket. Therefore, the coming weeks could see Xiami stock price experience substantial oscillations.
The momentum on Xiaomi stock price signals control by the buyers, with the pivot at HKD 35.00. That will likely see the stock encounter the first resistance at HKD 36.10. However, a stronger momentum will break above that level and potentially test the second barrier at HKD 36.85.
On the downside, moving below HKD 35.00 will shift the momentum to favour control by the sellers. The first support will likely be at HKD 34.25. Also, breaking below that level will invalidate the upside thesis. Also, such momentum could potentially take Xiaomi price lower to test the next support at HKD 33.30.
This post was last modified on Jan 21, 2025, 12:16 GMT 12:16