Hong Leong Asia Ltd: Steady Uptrend Signals Buying Opportunity
CGS-CIMB Research | March 25, 2025
Hong Leong Asia Ltd – Technical Buy
Hong Leong Asia Ltd. has been on a steady uptrend since July 2024, and our technical analysis suggests this trend is set to continue. The stock has broken out of a bullish flag formation and is trading above all Ichimoku indicators, signaling strong momentum.
Key technical highlights:
Uptrend channel intact since July 2024, showing no signs of slowing down
Bullish flag breakout indicates further upside potential
Prices above all Ichimoku cloud components (conversion line, base line, leading span A, leading span B)
MACD histogram positive, with MACD/signal line rising steadily above the zero line
23-period Rate of Change (ROC) rising steadily and above zero, with bullish divergence on the short-term
Recommendation and Targets
We reiterate our Technical Buy recommendation on Hong Leong Asia, with the following entry prices and target levels:
Entry Prices: S$1.08, S$1.00, S$0.97 Stop Loss: S$0.89 Target Prices: S$1.25, S$1.35, S$1.42, S$2.10
The stock has already reached our initial target of S$1.12, and we believe there is still substantial upside potential given the strong technical indicators. Investors should take advantage of the current steady uptrend to establish or add to their positions in Hong Leong Asia.
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