Huawei Announces New Chip Design Strategy to Counter US Sanctions

Huawei's new chip strategy could escalate technology tensions with the US, putting pressure on Chinese tech stocks. The 0700.HK stock has lost 4.5% in the last 24 hours, and while its RSI of 34.6 approaches oversold territory, the MACD continues to give a sell signal. In the short term, technical indicators remain weak, and the geopolitical risk perception created by the news may increase selling pressure. However, nearing oversold territory could set the stage for a potential rebound buying opportunity.

Huawei's new chip strategy could escalate US-China technology tensions, putting pressure on technology stocks listed on the Hong Kong stock exchange. Stock 9988.HK has lost 4.9% in the last 24 hours, and while its RSI of 36.5 approaches oversold territory, the MACD remains negative and the stock trades below its 20-day SMA (129.0) and 50-day SMA (132.1). The short-term technical outlook is weak, and the geopolitical risks stemming from the news may sustain selling pressure. However, oversold conditions and low price levels could limit the pace of further declines.

Huawei's new chip strategy, which has the potential to circumvent US sanctions, could create competitive pressure on NVDA. Technical indicators also point to weakness: the RSI is approaching oversold territory at 36.5, while the MACD is below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages. A 3.3% decline in the last 24 hours indicates continued selling pressure. The bearish trend is expected to persist in the short term.

AMD shares have risen 11.7% in the last 24 hours, trading above both the 20-day and 50-day moving averages. While the RSI at 64.4 approaches overbought territory, the MACD remains above the signal line, maintaining positive momentum. Huawei's new chip strategy could be perceived as a threat to AMD's competitors, but may increase interest in the semiconductor sector in the short term. Although technical indicators point to a strong uptrend, cautious optimism prevails due to overbought signals and the uncertain impact of the news.