Date: September 24, 2024
Broker: CGS International Securities Pte. Ltd.

Company Overview

Morimatsu International Holdings Co Ltd (HKG: 2155) is a Hong Kong-listed company engaged in the manufacturing and distribution of pressure equipment. It specializes in traditional, modular, and integrated pressure equipment, offering comprehensive solutions for various industries. The company operates internationally and provides related pressure equipment solutions to its clients.

Technical Analysis and Stock Performance

Last Price: HKD 4.85

The report highlights a bullish bottom rebound for Morimatsu International Holdings, with several key technical indicators pointing toward potential gains in stock price:

• Entry Prices: HKD 4.85, 4.14, 3.60
• Support Levels: 4.66, 3.46
• Stop Loss: 3.26
• Resistance Levels: 5.50, 6.26
• Target Prices:
  • Target 1: 6.20
  • Target 2: 7.30
  • Target 3: 8.00
  • Target 4: 9.40

Technical Indicators Signaling a Bullish Reversal

1. Descending Triangle Formation: The stock has formed a larger descending triangle pattern. There is a likely breakout above the downward sloping line as bullish pressure is building up.

2. Double Bottom Formation: A potential double bottom is forming. The breakout of the falling wedge, accompanied by heightened volume, indicates a strong bullish reversal is underway.

3. Ichimoku Indicator: Two out of the three key Ichimoku signals indicate a bullish crossover, and the Leading Span A is rising, suggesting an early upside reversal.

4. MACD & Signal Line: The MACD and Signal line have crossed at the bottom, with the histogram nearing positive territory, which is an encouraging sign for bullish momentum.

5. Stochastic Oscillator: The Stochastic Oscillator has performed an oversold crossover and risen above the 20-line. Additionally, a bullish divergence was spotted.

6. 23-Period Rate of Change (ROC): The ROC has risen above the zero line, further confirming bullish sentiment.

7. Directional Movement Index (DMI): This index confirms the strength of the bullish trend.

8. Volume Analysis: Trading volume has risen above the 20-period average for three consecutive days, reinforcing the stock’s strong bullish pressure.

Analyst Insights

The report’s analyst, Chua Wei Ren, highlights that the technical indicators suggest the potential for significant upside in Morimatsu International Holdings’ stock price. The various patterns and technical signals, combined with rising volume, suggest strong market confidence in a bullish reversal.

Disclaimer

The information in this report is general and not tailored to the specific investment objectives or financial situations of individual investors. The report is confidential and cannot be redistributed without permission from CGS International.