Date: October 25, 2024
Broker: CGS International Securities

Overview

HL Mando Co., Ltd (KR: 204320) is a South Korean company that manufactures and distributes automobile parts. The company produces a range of products including hydrogen fuel cell converters, radar, cameras, lidars, and other related components. In addition, HL Mando offers services in autonomous driving, vehicle predictive maintenance and diagnostics, as well as cloud-based data services.

Technical Analysis

The report indicates a positive technical outlook for HL Mando Co., Ltd, suggesting a “Technical Buy” based on several technical indicators:

• Entry Prices: 39,700 KRW, 36,600 KRW, and 32,500 KRW
• Support Levels:
  • Support 1: 36,650 KRW
  • Support 2: 31,700 KRW
• Stop Loss: 30,900 KRW
• Resistance Levels:
  • Resistance 1: 38,700 KRW
  • Resistance 2: 47,800 KRW
• Target Prices:
  • Target 1: 45,400 KRW
  • Target 2: 54,600 KRW
  • Target 3: 60,000 KRW
  • Target 4: 70,100 KRW

Key Technical Indicators

1. Bullish Reversal: The stock has shown a bottoming out reversal, suggesting it is likely to head towards the upside after a strong bullish rebound.
2. Support and Divergence: The stock continues to stay supported above 31,700 KRW, with recent price action indicating a bullish divergence against the rising Rate of Change (ROC).
3. Breakout Confirmation: A bullish breakout of the overhead resistance downtrend line suggests strong bullish action.
4. Ichimoku Indicator: Clear bullish signals observed, especially after prices trended above the “Kumo” cloud.
5. MACD Analysis: Positive MACD histogram, with a crossover between MACD and signal line at the bottom, indicating upward momentum.
6. Stochastic Oscillator: Confirmed the oversold crossover, supporting the bullish outlook.
7. Rate of Change (ROC): The 23-period ROC has risen above the zero line, adding to the positive sentiment.
8. Directional Movement Index (DMI): Both DM+ and ADX have risen above the 25-level, indicating strong bullish strength.
9. Volume: Expansion in trading volume is observed, signaling increased investor interest.

Analyst Commentary

The analyst, Wei Ren Chua, CMT, highlights that HL Mando is showing a potential for a sustained upward trend. The technical indicators suggest a clear path to recovery, with a series of bullish signals pointing towards continued price appreciation. The stock’s ability to stay above key support levels and the breakout of resistance lines confirm a solid bullish outlook.

Conclusion

Based on the technical analysis and the current performance indicators, the report maintains a positive view on HL Mando Co., Ltd, suggesting that the stock is poised for further gains. The upcoming price targets reflect confidence in the company’s potential to continue its upward momentum.