QFIN (360 DigiTech) - Undervalued Growth Play with Strong Upside

Ticker: QFIN (NASDAQ)
Recommendation: BUY
Current Price: $42.93
Entry Zone: $42 - $43 (Pullback to support)
Stop Loss: $39 (-9.2% from entry, below key swing low)
Take Profit: $50.70 (+18.1% upside)
Risk/Reward Ratio: 1:2

📈 Technical Analysis
Trend: Mixed but stabilizing (Daily: Neutral, 4H/1H: Recent weakness).

Key Levels:

Support: $41.50 (SMA-50), $39 (Strong demand zone).

Resistance: $43.50 (Recent high), $50.70 (2025 YTD resistance).

Indicators:

RSI (Daily): 53.16 (Neutral, no overbought/oversold signal).

MACD: Approaching bullish crossover on daily chart.

Volume: Light selling pressure, accumulation possible near support.

💡 Fundamental Catalyst
Deep Value Metrics:

P/E Ratio: 6.57 (Sector avg: ~20x)

P/B Ratio: 0.25 (Extremely undervalued)

Zero Debt: Debt-to-Equity of 0, pristine balance sheet.

Growth Potential: Fintech sector rebound, China regulatory easing hopes.

🎯 Why This Trade?
Extreme Undervaluation: P/B < 0.3 signals potential mean reversion.

Technically Oversold: RSI2 Connors signaled accumulation recently.

Asymmetric Risk/Reward: Limited downside (strong $39 support) vs. 20%+ upside.

⚡ Trade Management
Confirmation Needed: Wait for break above $43.50 with volume.

Add-on: Consider at $45 if momentum builds.

Trailing Stop: Move SL to $41 after TP1 at $47.

📉 Risks:

China macroeconomic/regulatory risks.

Low liquidity → Wider spreads.

✅ Verdict: QFIN is a high-risk, high-reward play for value hunters. Ideal for swing traders with patience.

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#QFIN #Fintech #Undervalued #ValueInvesting