Date: October 22, 2024
Broker Name: CGS International Securities

Company Overview

First Pacific Company Limited is an investment holding company operating primarily in the Asia-Pacific region. It focuses on sectors such as consumer food products, infrastructure, natural resources, and telecommunications.

Technical Analysis

Stock Information:

• Stock Code: 142 (HKG)
• Last Price: HK$4.43

Key Technical Indicators:

• Trend: The stock is in an early uptrend, with a positive continuation observed in the price action.
• Support Levels:
  • Support 1: HK$4.22
  • Support 2: HK$3.76
• Resistance Levels:
  • Resistance 1: HK$4.47
  • Resistance 2: HK$3.76
• Stop Loss: HK$3.25
• Entry Price(s): HK$4.43, HK$4.04, HK$3.65
• Target Prices:
  • Target 1: HK$4.84
  • Target 2: HK$5.00
  • Target 3: HK$6.60
  • Target 4: HK$8.40

Technical Snapshot

The technical analysis highlights a strong continuation of the uptrend:

1. Trend Reversal: The stock has completed a 3-wave corrective structure and rebounded above the psychological level of HK$4.00.
2. Resistance Breakout: The stock shows a steady uptrend after breaking the previous resistance of HK$4.07, which has now turned into a support level. This was the 2017 high, and breaking this level indicates a longer-term bullish trend.
3. Technical Indicators:
   • Ichimoku Indicators: The stock is trending above all Ichimoku indicators, suggesting strong support for the uptrend.
   • MACD: The MACD histogram is positive, and both the MACD and signal lines continue to rise above the zero line, indicating bullish momentum.
   • ROC (Rate of Change): The 23-period ROC dipped slightly but remains elevated above the zero line, supporting the ongoing uptrend.
   • Directional Movement Index: The index maintains a bullish strength signal, further indicating that the uptrend is intact.
4. Volume Trends: The volume trend is expanding in a healthy manner, which typically confirms the sustainability of the uptrend.

Analyst Insights

The analysis, conducted by Chua Wei Ren (CMT), emphasizes that the long-term trend for First Pacific Co Ltd appears bullish, supported by several positive technical indicators:

• Psychological Level: A significant rebound was observed above the HK$4.00 psychological level.
• Golden Cross Formation: A bullish golden cross was noted, adding further confidence in the continuation of the uptrend.
• Market Sentiment: Overall, the stock’s performance suggests a strong possibility of reaching higher target prices, backed by solid volume trends and bullish momentum.