Date: October 8, 2024
Broker: CGS-CIMB International Securities Pte. Ltd.

Company Overview

Zengame Technology Holding Ltd (2660) is a mobile game development company headquartered in China. The company primarily develops and sells board and card mobile games, along with other related products, which are marketed within the Chinese market.

Stock Overview

As of October 8, 2024, Zengame Technology Holding Ltd is priced at HKD 3.33 per share, with the stock breaking above a significant technical level, indicating a bullish outlook.

Key Technical Analysis Highlights

The technical analysis for Zengame Technology Holding Ltd indicates several positive trends based on recent price movements and indicators:

1. Bullish Breakout: The stock has broken out of a larger falling wedge and a smaller rectangle range, signaling a strong bullish reversal to the upside.
2. Uptrend Channel: On the weekly chart, Zengame Technology has been in an uptrend channel since its inception in April 2019. The breakout from the falling wedge indicates further upside continuation.
3. Technical Indicators:
   • Prices are trending above all Ichimoku indicators, reinforcing the uptrend reversal.
   • The MACD histogram has turned positive.
   • The Stochastic oscillator shows a near oversold crossover at the 20-line, with a bullish divergence.
   • The 23-period ROC has rebounded above the zero line.
   • The Directional Movement Index indicates a healthy uptrend strength, with the ADX and DM+ crossing above the 25-level.
   • Trading volume remains in healthy expansion, further supporting the bullish sentiment.

Support and Resistance Levels

• Support 1: HKD 2.94
• Support 2: HKD 2.51
• Resistance 1: HKD 3.80
• Resistance 2: HKD 6.00

Target Prices

Zengame Technology Holding Ltd has several target price levels:

• Target 1: HKD 4.00
• Target 2: HKD 4.80
• Target 3: HKD 6.60
• Target 4: HKD 8.40

Analyst Commentary

According to CGS-CIMB analyst Chua Wei Ren, Zengame Technology is poised for further growth based on its strong bullish indicators. The positive momentum is expected to continue as several technical indicators point toward a healthy uptrend. This includes a robust volume expansion and a confirmed oversold crossover on the Stochastic oscillator.

Overall, the technical outlook for Zengame Technology Holding Ltd remains highly positive with a strong potential for upward price movement in the near term.