Date: October 24, 2024
Broker: CGS International Securities

Company Overview

Vobile Group Ltd (HKG: 3738) operates as a software-as-a-service (SaaS) provider. The company specializes in digital content protection and monetization services. Vobile Group’s offerings cater to a range of industries, including studios, television networks, streaming media platforms, blockchain, and digital collection markets.

Technical Analysis

Vobile Group’s recent price action indicates a potential bottoming out and a positive trend moving forward. Below are key technical indicators and insights:

1. Rounding Bottom Formation: The stock has formed a rounding bottom, suggesting a reversal. It has been gaining momentum, especially after rebounding above the HK$2.12 mark, which has transitioned from resistance to support.
2. Positive Trend Indicators:
   • Prices are trending above all Ichimoku indicators.
   • The MACD histogram shows positive readings, and the MACD/signal line has crossed above the zero line, indicating a bullish trend.
   • The stochastic oscillator is rising, further confirming the momentum.
   • The 23-period Rate of Change (ROC) remains above the zero line, supporting the upward trend.
   • The directional movement index confirms bullish strength.
3. Volume and Support Levels:
   • The volume has been healthy, reinforcing the strength of the bullish trend.
   • Key support levels are identified at HK$2.12 and HK$4.36.

Entry and Target Prices

• Entry Prices: HK$2.90, HK$2.40, HK$1.80
• Stop Loss: HK$1.24
• Target Prices:
  1. HK$3.80
  2. HK$4.54
  3. HK$6.30
  4. HK$9.00

Analyst Commentary

According to CHUA Wei Ren, CMT, from CGS International, Vobile Group’s technical indicators suggest a positive outlook. The stock appears to be bottoming out, with multiple indicators supporting the likelihood of an upward trend. The bullish strength is further confirmed by consistent volume and positive momentum across various technical metrics.

Conclusion

Overall, Vobile Group Ltd shows promising signs of recovery, backed by strong technical indicators that suggest potential for a continued upward trend. Investors may find it an attractive opportunity based on the outlined entry points and target prices.