Date of Report: October 3, 2024
Broker Name: CGS International

Overview of China Resources Beer Holdings Co Ltd

China Resources Beer Holdings Co Ltd (Ticker: 291) is a company that specializes in the production, sale, and distribution of beer products. The company is a key player in the alcoholic beverage industry and primarily serves clients in Hong Kong.

Technical Analysis and Market Outlook

According to the report, China Resources Beer Holdings has experienced a significant technical breakout, signaling the resumption of its uptrend. The company’s stock price has risen above its downtrend line, which is backed by strong volume, indicating positive momentum in its stock performance.

Several technical indicators support the bullish trend for the stock, such as:

1. Ichimoku Indicator: Prices are trending above this indicator, confirming the bullish trend.
2. Weekly Chart Analysis: There is a strong bullish expanded wedge formation, indicating long-term upside potential.
3. RSI (14-weeks): A bullish divergence in the Relative Strength Index further supports the upward trend.

Key Technical Indicators

1. Rate of Change (ROC): The short-term ROC has sharply risen above the zero line, confirming strong bullish momentum.
2. Directional Movement Index (DMI): Both the ADX and DM+ are rising, confirming the strength of the bullish trend.
3. Stochastic Oscillator: The mid-term Stochastic Oscillator indicates an oversold crossover, signaling potential for further gains.
4. MACD: The long-term Moving Average Convergence Divergence (MACD) has performed a crossover at the bottom, with the histogram turning positive, indicating further bullish potential.
5. Volume Trends: The volume has surged for the past 20 periods, another signal of strengthening momentum.

Entry and Price Targets

• Entry Prices: The report suggests entry at HK$35.85, or on pullbacks to HK$28.30 or HK$23.40.
• Support Levels: Support 1 at HK$33.60 and Support 2 at HK$26.25.
• Stop Loss: HK$19.70.
• Resistance Levels: Resistance 1 at HK$45.00 and Resistance 2 at HK$62.50.
• Target Prices:
  • Target Price 1: HK$46.45
  • Target Price 2: HK$62.50
  • Target Price 3: HK$77.40
  • Target Price 4: HK$84.50

The report emphasizes that once the stock reaches the first target price of HK$46.45, traders should consider shifting their stop-loss to break even.

Conclusion

China Resources Beer Holdings is showing strong bullish potential, with multiple technical indicators supporting further upside. The combination of positive volume trends, bullish technical patterns, and strategic entry points positions this stock as a strong candidate for both short-term and long-term gains.