Date: September 30, 2024
Broker: CGS International
Company Overview
Longfor Group Holdings Ltd, listed on the Hong Kong Stock Exchange (HKG: 960), is a real estate development company. It develops and markets residential areas, office buildings, hotels, restaurants, and other related areas. In addition to property development, Longfor provides community management services, landscape greening materials maintenance, real estate agencies, and other services.
Technical Snapshot
Longfor Group Holdings Ltd has reached the first target price of HK$14.64 as forecasted in a previous report dated April 30, 2024. The price action suggests a potential larger double-bottom formation with a breakout from a falling wedge pattern. Ichimoku indicators have shown a bullish outlook, with three bullish golden crosses indicating a strong return to the uptrend.
Key Technical Indicators:
- Short-term rate of change is rising sharply above the zero line, confirming momentum.
- The Directional Movement Index (DMI) confirms bullish strength, with both ADX and DM+ moving up together.
- The mid-term Stochastic Oscillator indicates an oversold crossover, while the long-term MACD histogram has turned positive.
- Volume has increased significantly over the past 10 trading days.
Trade Recommendations
The report suggests buying Longfor Group Holdings at HK$13.72 or accumulating on pullbacks at HK$12.00 or HK$8.50. The stop loss is set at HK$7.60. Traders are advised to shift the stop loss to break even once the first target price is achieved.
Support Levels:
- Support 1: HK$11.06
- Support 2: HK$7.74
Resistance Levels:
- Resistance 1: HK$15.06
- Resistance 2: HK$22.00
Target Prices:
- Short-term target: HK$16.12
- Long-term target: HK$32.50
Recent Performance
Longfor Group’s technical performance has been strong, driven by a confirmed resurgence in bullish momentum. The combination of technical patterns, such as the double-bottom formation and the falling wedge breakout, aligns with the broader market uptrend. Additionally, volume increases and key technical indicators provide further confirmation of the uptrend.
