Date: September 20, 2024
Broker: CGS-CIMB Securities

Company Overview

SITC International Holdings Co Ltd (1308) is a provider of marine shipping services, focusing on container liner shipping, freight forwarding, customs clearance, shipping agency, and ship brokerage services. The company operates across Asia, catering to a variety of logistics and transportation needs.

Key Highlights

• Resumption to the Upside: SITC International has demonstrated a strong price action with potential for continued upward movement. Following a correction earlier, the price action shows signs of resuming a bullish trajectory.
• Technical Buy Recommendation: The report highlights that SITC has broken out of key overhead resistance levels in August, confirming its upward trend.

Entry and Target Prices

• Last Price: 38.00
• Entry Prices: 38.00, 17.90, 16.10
• Support Levels: 18.22 (Support 1), 15.52 (Support 2)
• Stop Loss: 14.70
• Resistance Levels: 21.90 (Resistance 1), 29.40 (Resistance 2)
• Target Prices:
  1. 21.55
  2. 24.20
  3. 31.00
  4. 35.40

Technical Indicators and Analysis

1. Breakout of Resistance: SITC successfully broke above key resistance levels, followed by a flag formation breakout, reinforcing the bullish momentum.
2. Bullish Marubozu Candle: A strong bullish Marubozu candle closed above the Kumo cloud, further confirming the bullish stance.
3. Ichimoku Indicators: The price is trending above all Ichimoku indicators, with a bullish crossover in Span A and Span B.
4. Stochastic Oscillator: The Stochastic Oscillator has performed an oversold crossover, climbing above the 20-line, which suggests a potential for upward movement.
5. 23-Period Rate of Change (ROC): The ROC has moved above the zero line, indicating bullish momentum.
6. Directional Movement Index (DMI): This index confirms the ongoing bullish strength, adding further validation to the upward trend.
7. Healthy Volume: Trading volume remains healthy, supporting the continued momentum in the stock.

Analyst’s Perspective

The report, authored by CHUA Wei Ren, CMT, emphasizes the strong technical outlook for SITC International. The combination of the breakout, bullish candlesticks, and positive technical indicators suggest that the stock is well-positioned for further gains. Investors are advised to monitor the support and resistance levels closely, while the healthy volume and bullish indicators present a favorable setup for potential upside.