Date: October 22, 2024
Broker: CGS International Securities

Overview of HKBN Ltd (1310)

HKBN Ltd. provides a range of telephone voice and data communication services, including wireless internet services, IDD and IPTV services, local telephony, and other value-added offerings.

Current Stock Status

• Last Price: HK$3.29
• Trend: Early uptrend intact
• Technical Buy Recommendation: The stock shows signs of continued growth, indicating a positive trend.

Key Technical Indicators

1. Price Action:

   • Reached the first target price (TP) of HK$3.18 as per the recent analysis dated September 16, 2024.
   • Currently displaying strong continuation to the upside.
   • Higher highs and lows are forming, confirming the uptrend.

2. Chart Patterns:

   • Formation of a larger V-shaped bottom.
   • Breakout of the pennant signal suggests further upside potential.

3. Technical Analysis:

   • The stock is trading above all Ichimoku indicators.
   • Positive MACD histogram, with the MACD/Signal line rising and staying above the zero line.
   • The 23-period ROC has slightly dipped but remains above the zero line.
   • Directional Movement Index indicates continued bullish strength.
   • Volume expansion shows a healthy trend.

Entry and Exit Points

• Entry Prices: HK$3.29, HK$2.94, HK$2.60
• Support Levels:
  • Support 1: HK$5.89
  • Support 2: HK$4.98
• Resistance Levels:
  • Resistance 1: HK$6.30
  • Resistance 2: HK$8.50
• Stop Loss: HK$2.25
• Target Prices:
  • Target 1: HK$3.70
  • Target 2: HK$4.00
  • Target 3: HK$4.60
  • Target 4: HK$6.40

Analyst Notes

Analyst Chua Wei Ren, CMT, suggests adding to the buy position based on the strong continuation of the uptrend. The analysis highlights that the stock is demonstrating key technical strength and remains positioned for potential upward movement.