Date: October 22, 2024
Broker: CGS International Securities

Company Overview

HKBN Ltd. (HKG: 1310) is a provider of telephone voice and data communication services. The company offers various services, including wireless internet service, IDD and IPTV services, local telephony, and other value-added services.

Technical Analysis

• Trend: Early uptrend intact
• Price Action: The stock price has continued its upward movement, showing a breakout from a pennant pattern. A v-shaped bottom has formed, indicating further upside potential.
• Key Indicators:
  1. Higher highs and lows are forming, confirming the ongoing uptrend.
  2. The stock is trending above all Ichimoku indicators, supporting the bullish outlook.
  3. The MACD histogram remains positive, with both the MACD and Signal lines rising and staying above the zero line.
  4. The 23-period ROC shows a slight dip but remains above the zero line, indicating sustained momentum.
  5. The directional movement index (DMI) signals bullish strength, backed by expanding volume in a healthy trend.

Price Targets and Levels

• Entry Prices: 3.29, 2.94, 2.60
• Support Levels:
  • Support 1: 5.89
  • Support 2: 4.98
• Resistance Levels:
  • Resistance 1: 6.30
  • Resistance 2: 8.50
• Target Prices:
  • TP1: 3.70
  • TP2: 4.00
  • TP3: 4.60
  • TP4: 6.40

Recent Performance

The stock reached its first target price of HK$3.18, as noted in the report from September 16, 2024. The positive continuation of the price trend has led to the recommendation to buy more, given the strong technical indicators.

Analyst Commentary

The report highlights several reasons for a positive outlook on HKBN:

1. The formation of a larger v-shaped bottom pattern suggests a solid foundation for the uptrend.
2. Continuous higher highs and lows signal an ongoing bullish trend.
3. Key technical indicators, such as Ichimoku indicators, MACD, and ROC, provide additional support for the positive outlook.
4. Increased trading volume indicates strong investor interest and momentum, further supporting the upward trend.

Overall, the report suggests adding to positions in HKBN due to the favorable technical setup and the company’s continued performance above key support levels.