Date: October 2, 2024
Broker: CGS International

Overview of New Oriental Education & Technology Group Inc (9901)

New Oriental Education & Technology Group Inc (9901) offers educational services, including foreign language training, test preparation courses for admissions and assessment tests in the United States, the People’s Republic of China (PRC), and Commonwealth countries. The company also provides primary and secondary school education and operates software development.

Stock Performance and Technical Buy Recommendation

The current recommendation for New Oriental Education & Technology Group Inc (9901) is a “Technical Buy.” The last price observed was HK$62.00, and the overall uptrend remains intact.

Key Entry Prices:

• HK$62.00 (spot price)
• HK$52.70 (pullback accumulation)
• HK$48.50 (pullback accumulation)

Support Levels:

• Support 1: HK$55.60
• Support 2: HK$38.60

Resistance Levels:

• Resistance 1: HK$76.00
• Resistance 2: HK$84.00

Stop Loss: HK$42.60

Target Prices

• Target price 1: HK$76.12 (short-term)
• Target price 2: HK$80.50
• Target price 3: HK$90.40
• Target price 4: HK$102.50 (long-term)

Technical Analysis

New Oriental Education & Technology Group Inc (9901) has broken out of a descending channel, supported by two strong candles and rising volume, confirming an upward continuation.

Key Technical Indicators:

1. Rate of Change: Rising above the zero line, signaling strong momentum and bullish divergence.
2. Directional Movement Index (DMI): Shows bullish strength, with ADX bottoming out and DM+ rising.
3. Stochastic Oscillator: Confirmed an oversold crossover in the mid-term, indicating potential for upside.
4. MACD: The long-term MACD performed a crossover at the bottom, further supporting the bullish outlook.
5. Volume: A significant surge in volume was observed over the past four periods, adding further strength to the uptrend.

Ichimoku Indicator

The price action for New Oriental Education & Technology Group Inc (9901) is trending above the Ichimoku indicator, which suggests bullish momentum. A bullish “kumo twist” has just begun, indicating further potential for upward movement.

Analyst Commentary

The breakout from the descending channel, combined with the technical indicators, suggests that New Oriental Education is in a confirmed uptrend. The stock is supported by multiple technical factors, and traders are advised to enter positions at HK$62.00 or accumulate on pullbacks. The stop loss should be placed at HK$42.60, and traders should consider shifting their stop loss to break even once the stock reaches the first target price of HK$76.12.