Date: September 20, 2024
Broker: CGS International Securities

Overview of Ping An Insurance Group Co of China

Ping An Insurance Group Co of China Limited (HKG: 2318) is a major Chinese financial services company providing products and services across multiple ecosystems, including financial services, healthcare, auto services, real estate, and Smart City solutions. The company’s core business involves writing property, casualty, and life insurance products.

Recent Technical Analysis and Stock Performance

Ping An Insurance has demonstrated a strong bullish recovery, reaching beyond the second target price (TP) of HKD 43.80 before a minor correction. Despite this, the overall upside recovery remains intact with bullish indicators in place.

Key technical signals include:

1. Double Bottom Formation: A completed double bottom formation is a bullish reversal pattern. The break above the neckline resistance turned support at HKD 35.40 confirmed this upside.

2. Break of Bullish Flag: The small bullish flag formation broke, further confirming the bullish continuation pattern.

3. Falling Wedge Breakout: The break above the larger falling wedge pattern signifies strong bullish continuation potential.

4. Marobozu Candle: A strong bullish marobozu candle was seen, closing above the kumo cloud, an indication of strong upward pressure.

5. Ichimoku Indicators: The stock price is trending above all Ichimoku indicators, with the leading Span A and B showing a bullish crossover.

6. MACD & Stochastic Oscillator: The MACD histogram remains positive, with both the MACD and signal lines continuing to rise. Additionally, the Stochastic Oscillator has performed an oversold crossover, further supporting a bullish outlook.

7. 23-Period ROC: The 23-period Rate of Change (ROC) has risen above the zero line, indicating upward momentum.

8. Volume: Volume remains healthy and above the 20-period moving averages, supporting sustained bullish momentum.

Support and Resistance Levels

• Entry Prices: HKD 37.20, HKD 34.60, HKD 32.10
• Support 1: HKD 35.40
• Support 2: HKD 29.00
• Stop Loss: HKD 28.90
• Resistance 1: HKD 38.15
• Resistance 2: HKD 50.45

Target Prices

• Target Price 1: HKD 43.10
• Target Price 2: HKD 48.00
• Target Price 3: HKD 54.00
• Target Price 4: HKD 58.40

Conclusion

Based on technical analysis, Ping An Insurance is showing signs of a strong bullish recovery with multiple technical indicators supporting continued upside. The completion of key bullish formations, such as the double bottom and falling wedge breakouts, along with positive momentum indicators, positions the stock for further gains in the coming months.