Date: October 10, 2024
Broker: CGS International Securities

Company Overview

Meituan (HKG: 3690) is a web-based shopping platform that operates throughout China, offering deals on local consumer products and services. The platform provides various services, including entertainment, dining, delivery, and other local services, catering to a wide range of consumer needs. It has grown into a significant player in the local services market, facilitating everyday transactions for millions of users.

Stock Performance and Analysis

Recent Price Movements

• Last price: HK$184.40
• The stock has shown a rebound at an immediate support level of HK$177.70 after a bearish session. It experienced a strong sell-off earlier in the week, but technical indicators suggest the stock is regaining its bullish momentum.

Support and Resistance Levels

• Support 1: HK$177.70
• Support 2: HK$158.70
• Resistance 1: HK$240.00
• Resistance 2: HK$303.80

Entry and Target Prices

• Entry Price(s): HK$184.40, HK$158.00, and HK$146.00
• Target Prices:
  • Target Price 1: HK$224.00
  • Target Price 2: HK$260.80
  • Target Price 3: HK$300.20
  • Target Price 4: HK$330.00

Technical Indicators

1. Support Rebound: Meituan’s price action indicates support at HK$177.70, weakening the selling pressure after a correction.
2. Ichimoku Indicators: The stock remains above all Ichimoku indicators, indicating strong bullish momentum.
3. MACD: The MACD histogram is positive, with both MACD and signal lines trending above the zero line, further confirming a bullish sentiment.
4. Rate of Change (ROC): The 23-period ROC continues to rise and remains above the zero line, reinforcing positive price momentum.
5. Directional Movement Index (DMI): The DMI confirms the bullish strength in the market for Meituan.
6. Volume Trends: Expanding volume supports the upward price movement, indicating a healthy trend in stock performance.

Outlook

The stock has displayed strength in recent price movements, and its technical indicators support continued bullish momentum. While Meituan saw a significant rise followed by a strong sell-off, it remains on an upward trend. There is potential for a short-term correction, but major support is expected around HK$140.00. The stock continues to benefit from positive momentum indicators, suggesting further gains ahead despite the possibility of volatility.

This analysis is based on data available as of October 10, 2024, and reflects the views of CGS International Securities.