Date: October 21, 2024
Broker: CGS International Securities

Company Overview

Bank of Communications Co., Ltd. (Stock Code: 3328) is a financial institution that provides a range of banking services including deposits, loans, domestic settlement, and currency trading. It serves individuals, enterprises, and other clients, positioning itself as a significant player in the banking sector.

Current Stock Performance

• Last Price: HKD 6.28
• Entry Price Ranges: 6.28, 5.84, 5.45
• Support Levels:
  • Support 1: HKD 5.89
  • Support 2: HKD 4.98
• Resistance Levels:
  • Resistance 1: HKD 6.30
  • Resistance 2: HKD 8.50
• Stop Loss: HKD 4.95

Technical Indicators and Analysis

The report highlights several technical indicators suggesting a bullish trend for Bank of Communications Co Ltd:

1. Formation of Broadening/Megaphone Pattern:
   The stock has been showing a rare broadening or megaphone pattern, which indicates the potential for a breakout. A v-shaped bottom was observed, and recently, the stock broke out of a bullish flag, signaling upward momentum.

2. Positive MACD Histogram:
   The MACD histogram is in the positive zone, with the MACD and signal lines rising above the zero line, suggesting sustained bullish strength.

3. Stochastic Oscillator Trending Upward:
   The stochastic oscillator continues to rise, further affirming the bullish momentum in the stock.

4. ROC and Volume Trends:
   The 23-period Rate of Change (ROC) has rebounded above the zero line, and the volume has been expanding, indicating a healthy upward trend.

Price Targets

• Target Price 1: HKD 6.90
• Target Price 2: HKD 7.60
• Target Price 3: HKD 9.50
• Target Price 4: HKD 10.40

Analyst Insights

The report from CGS International Securities, prepared by analyst Chua Wei Ren, CMT, suggests that the stock’s price action is displaying strong bullish tendencies. All indicators, including the Ichimoku indicators, are positive, reinforcing the view that the stock could see further upward momentum. The analyst notes that Bank of Communications is trending above key technical indicators, supporting the optimistic outlook.