Report Date: October 25, 2024
Broker: CGS International

Company Overview

China Hongqiao Group Ltd. (1378) is a manufacturer of aluminum products. The company’s offerings include molten aluminum alloy, aluminum alloy ingots, and aluminum busbars.

Stock Performance Analysis

Technical Buy Recommendations

• Last Price: 14.02 HKD
• Entry Prices: 14.02 HKD, 12.00 HKD, 10.85 HKD
• Support Levels:
  • Support 1: 13.48 HKD
  • Support 2: 11.00 HKD
• Stop Loss: 9.24 HKD
• Resistance Levels:
  • Resistance 1: 14.28 HKD
  • Resistance 2: 15.72 HKD
• Target Prices:
  • Target Price 1: 15.80 HKD
  • Target Price 2: 18.54 HKD
  • Target Price 3: 19.30 HKD
  • Target Price 4: 22.00 HKD

Technical Indicators Supporting Bullish Trend

1. Trend Reversal: The stock has broken out of the overhead downtrend resistance, completing a double-bottom formation.
2. Bullish Patterns: An ascending triangle is forming, suggesting a bullish breakout as the resistance is being tested multiple times.
3. Price Movement: Prices are trending above all Ichimoku indicators, showing positive movement.
4. MACD Analysis: The MACD histogram is positive, and the MACD/signal line has risen above the zero line, indicating upward momentum.
5. Stochastic Oscillator: Rising values confirm strong momentum for the stock.
6. Rate of Change (ROC): The 23-period ROC remains above the zero line, supporting bullish momentum.

Analyst Commentary

According to the report, China Hongqiao Group Ltd is exhibiting a strong bullish continuation. The technical indicators suggest that the stock is set to trend higher. Key highlights include the breakout of resistance, bullish patterns, and favorable technical signals, indicating a possible upward trajectory in the near term.

Conclusion

The analysis suggests a positive outlook for China Hongqiao Group Ltd, driven by technical indicators pointing towards sustained bullish momentum. The company’s stock has multiple target prices, with the highest being 22.00 HKD, and is recommended as a technical buy.