Date of Report: October 8, 2024
Broker Name: CGS International Securities

Company Overview

Sa Sa International Holdings Ltd (HKG: 178) is a leading beauty product retailing group in Asia. The company operates one-stop cosmetics stores offering a wide range of products, including skincare, fragrances, make-up, hair, and body care items. Additionally, they provide health and beauty supplements. Sa Sa is also well-known for offering a convenient shopping experience through its multiple online platforms.

Recent Performance

On October 8, 2024, Sa Sa International Holdings Ltd exhibited a strong bullish breakout, signaling a potential trend reversal. After hitting a low point at HK$0.64, the stock rebounded with significant volume, indicating renewed bullish sentiment.

Technical Analysis and Key Metrics

According to the technical analysis:

• Entry Prices: HK$0.93, HK$0.82, HK$0.68
• Support Levels:
  • Support 1: HK$0.83
  • Support 2: HK$0.62
• Stop Loss: HK$0.59
• Resistance Levels:
  • Resistance 1: HK$1.08
  • Resistance 2: HK$1.21
• Target Prices:
  • Target 1: HK$1.10
  • Target 2: HK$1.16
  • Target 3: HK$1.24
  • Target 4: HK$2.10

Bullish Indicators

Several technical indicators suggest a potential bullish reversal:

1. Breakout from Downtrend: Sa Sa has broken out of a downtrend line formed since January 26, 2023. This breakout was accompanied by a strong bullish candle, suggesting the beginning of a positive reversal.
2. Range Breakout: The stock has successfully broken out of a trading range between HK$0.62 and HK$0.83, further confirming the bullish sentiment.
3. Ichimoku Indicators: Prices are trending above all Ichimoku indicators, supporting the positive outlook.
4. MACD: The MACD histogram is positive, and the MACD/signal line has been rising since a crossover at the bottom, indicating upward momentum.
5. Stochastic Oscillator: The Stochastic Oscillator has confirmed an oversold crossover, another bullish signal.
6. Rate of Change (ROC): The 23-period ROC is rising and has crossed back above the zero line, indicating strength in the trend.
7. Directional Movement Index (DMI): The DMI is showing a strong bullish signal.
8. Volume Spike: A significant increase in volume during the breakout further supports the likelihood of a bullish reversal.

Analyst’s Commentary

The report by CGS International Securities suggests that despite the recent stop-loss trigger at HK$0.64, Sa Sa International Holdings Ltd is showing renewed upside potential. The bullish breakout, combined with positive technical indicators and a strong volume, reinforces the outlook for a continued upward trend.

This information provides a detailed analysis of Sa Sa International Holdings Ltd based on the October 8, 2024 report by CGS International Securities.