Date: October 21, 2024
Broker Name: CGS International Securities

Company Overview

SY Holdings Group Ltd (Stock Code: 6069) is a company offering financial services, including receivable accounts financing, factoring financing, asset management, and credit assessment. The company serves a broad customer base, including large state-owned enterprises, listed companies, and other groups.

Technical Analysis and Stock Performance

SY Holdings Group Ltd’s stock price is currently experiencing an early-stage uptrend, showing strong signs of recovery. Below are the key points from the technical analysis provided:

• Current Price & Entry Points:

  • Last price: HK$6.38
  • Recommended entry prices: HK$6.38, HK$5.70, HK$5.00

• Support & Resistance Levels:

  • Support 1: HK$6.38
  • Support 2: HK$5.22
  • Resistance 1: HK$7.50
  • Resistance 2: HK$9.50

• Stop Loss & Target Prices:

  • Stop Loss: HK$4.75
  • Target Prices:
    • Target 1: HK$7.90
    • Target 2: HK$9.60
    • Target 3: HK$10.50
    • Target 4: HK$13.50

Key Technical Indicators

The analysis highlights several technical indicators pointing to a bullish trend:

1. Price Action:
   The stock has broken above the HK$6.38 resistance, turning it into support, confirming a rounding bottom formation. This indicates a potential continuation of the upward trend.

2. Bullish Candlestick Pattern:
   A bullish engulfing candle was observed, closing above the 9-period conversion and 26-period baseline of the Ichimoku indicator, signaling a strong uptrend.

3. Breakout of Falling Wedge:
   The stock broke out of a falling wedge pattern that began in July 2021. This breakout is further validated by a series of higher highs and higher lows.

4. MACD Analysis:
   The MACD histogram remains positive, and both the MACD and signal lines are rising, staying above the zero line, indicating continued bullish momentum.

5. Stochastic Oscillator:
   While the stochastic indicator confirms an overbought signal, it suggests that there might be room for further upward movement, albeit with caution.

6. Rate of Change (ROC):
   The 23-period ROC has rebounded above the zero line, suggesting positive momentum.

7. Trading Volume:
   The trading volume shows healthy expansion, supporting the current uptrend.

Analyst Recommendation

The report classifies SY Holdings Group Ltd as a “Technical Buy,” suggesting that the uptrend is still in its early stages. The stock’s technical indicators align to suggest that there is potential for further gains.