HWL-C1 down on correction for the underlying share, HWL

HWL-C1 is one of those recommendation that I wish I have not made (go here). It was imprudent to call a buy on a stock [or, a CW linked to it] after a very sharp price run-up. From the daily chart below, we can see that HWL is likely to pull back & test its January high of HK$83.00 and, in the process, closing the July 9 gap. If the HK$83.00 support is violated, the next support would be the HK$82.00 level. A recovery from either level would likely lead to a recovery in HWL-C1. If both support levels are violated, it would be advisable to close your position on this CW, if you are still holding it.


Chart: HWL's daily chart as at July 13 (courtesy of HKEX)

This is strictly a technical call without any consideration of the company's financial performance & position.