Date of Report: October 28, 2024
Broker: CGS International Securities

Company Overview

Jardine Cycle & Carriage Ltd (JCNC) operates as an investment holding company with a diverse portfolio across multiple industries. Through its subsidiaries, JCNC invests in sectors such as automotive, consumer finance, utilities and infrastructure, heavy equipment and mining, property, agribusiness, cement, and consumer products. The company primarily serves customers across Southeast Asia.

Recent Technical Analysis

Breakout of Consolidative Range

JCNC recently broke out of a small consolidative range, which was previously filled with bullish buying bars. This breakout is seen as a potential bullish signal for the company’s stock.

Moving Beyond the Downtrend

Following its recent upward trend, JCNC has surpassed a 6-month downtrend line, signaling a possible positive price movement.

Indicators Supporting Bullish Momentum

1. Ichimoku Indicator: Shows two out of three bullish crossovers, which further supports a favorable outlook.
2. Stochastic Oscillator: An oversold crossover in this oscillator suggests a possible increase in buying pressure.
3. Rate of Change (ROC): The 23-period ROC has moved above the zero line, accompanied by a bullish divergence, indicating potential upward momentum.

Entry and Target Prices

• Entry Prices: Recommended entry points are at 28.09, 26.50, and 25.84.
• Support Levels:
  • Support 1: 26.65
  • Support 2: 24.50
• Stop Loss: Suggested at 23.90 to manage downside risk.

Resistance and Target Prices

1. Resistance Levels:
   • Resistance 1: 29.12
   • Resistance 2: 31.98
2. Target Prices:
   • Target 1: 29.10
   • Target 2: 31.90
   • Target 3: 34.60
   • Target 4: 39.60

Analyst Remarks

The report by CGS International Securities suggests that JCNC’s current technical indicators and price action imply a bullish continuation. Based on the current trajectory and indicators like the Ichimoku crossovers and ROC, JCNC appears well-positioned for potential gains in the near term.