Thursday, April 3rd, 2025

Bullish Reversal Signals Strong Upside for China International Capital Corp Ltd (3908)

Date: September 27, 2024
Broker: CGS International


Company Overview

China International Capital Corporation Limited (CICC) operates as an international investment bank. The company provides a variety of financial services, including investment banking, capital markets, securities sales and trading, fixed income, asset management, and private equity. Additionally, it offers individual wealth management and research services. CICC plays a critical role in providing financial services both domestically in China and internationally.


Technical Analysis

The stock price of CICC (HKG: 3908) is currently showing a strong reversal to the upside. This bullish sentiment is driven by the following factors:

  • Price Action: CICC has broken out of a larger descending triangle pattern with support from a steady flow of rising volume. The bullish engulfing candle pattern supports the positive momentum.

  • Technical Indicators:

    1. The short-term rate of change (ROC) has risen above the zero line, signaling a bullish trend reversal.
    2. The Directional Movement Index (DMI) indicates strengthening bullish momentum.
    3. The mid-term Stochastic Oscillator has confirmed an oversold crossover, supporting the upward momentum.
    4. The long-term Moving Average Convergence Divergence (MACD) histogram is positive, reinforcing the bullish trend.
    5. Volume has risen consecutively for the past 10 trading days, further indicating strong buying interest.

Key Trading Levels

  • Entry Price(s): HK$10.62, HK$9.00, HK$8.53
  • Support Levels:
    • Support 1: HK$9.35
    • Support 2: HK$8.30
  • Stop Loss: HK$7.36
  • Resistance Levels:
    • Resistance 1: HK$11.20
    • Resistance 2: HK$13.50
  • Target Prices:
    • Target Price 1: HK$12.80
    • Target Price 2: HK$13.90
    • Target Price 3: HK$15.50
    • Target Price 4: HK$16.30

Trading Recommendation

Traders are encouraged to consider buying at the current spot price of HK$10.72 or to accumulate on pullbacks at HK$9.00 or HK$8.53. A stop loss should be set at HK$7.36. Upon reaching the first target price of HK$12.80, it is recommended to shift the stop loss to break even to lock in profits. The long-term target for CICC is projected at HK$16.30.


Analyst Contact Information


Disclaimer

This report is provided by CGS International for informational purposes only and does not constitute investment advice. It is prepared from data believed to be reliable at the time of publication. However, CGS International does not guarantee the adequacy, accuracy, or completeness of the information provided.

SD Guthrie Q3 2024 Earnings: Strong Upstream Performance Offsets Downstream Weakness

In-Depth Analysis of SD Guthrie’s Financial Performance and Investment Potential In-Depth Analysis of SD Guthrie’s Financial Performance and Investment Potential Date: November 21, 2024 Broker: Maybank Investment Bank Berhad Introduction to SD Guthrie SD...

Seatrium Limited: Return to Profit and Strong Order Book Signal Bright Future for Offshore & Marine Giant

Comprehensive Analysis of Seatrium Limited and Industry Peers Comprehensive Analysis of Seatrium Limited and Industry Peers Broker: OCBC Investment Research Date: 12 November 2024 Seatrium Limited: A Return to Profitability Seatrium Limited, headquartered in...

Attention CPF Investors: New Restrictions on SGX Watch-Listed Securities from December 4, 2024 – Share This Update With Fellow Investors!

Attention CPF Investors: New Restrictions on SGX Watch-Listed Securities from December 4, 2024 Starting December 4, 2024, CPF monies will no longer be eligible for investment in securities added to the SGX watch-list under...