Vitasoy International Holdings Ltd: Bullish Breakout Signals a Promising Uptrend

Date: October 15, 2024
Broker Name: CGS-CIMB Retail Research

Overview of Vitasoy International Holdings Ltd

Vitasoy International Holdings Ltd, listed under HKG: 345, is a company that manufactures and distributes food and beverages. The company is well-known for its range of plant-based products, including soy drinks, tofu, and various other health-focused beverages and food items. Its subsidiaries help expand its footprint in both local and international markets.

Stock Performance and Key Technical Indicators

Current Stock Price and Entry Points

As of October 15, 2024, Vitasoy’s stock is priced at HKD 6.71. The stock shows a bottom rebound, indicating potential upward momentum. Suggested entry points for investors are HKD 6.71, HKD 5.30, and HKD 4.72.

Support and Resistance Levels

• Support 1: HKD 5.90

• Support 2: HKD 5.24

• Stop Loss: HKD 4.18

• Resistance 1: HKD 7.69

• Resistance 2: HKD 9.26

Target Prices

Analysts have set multiple target prices for Vitasoy’s stock:

• Target Price 1: HKD 8.10
• Target Price 2: HKD 9.60
• Target Price 3: HKD 10.80
• Target Price 4: HKD 13.00

Technical Analysis

1. Downtrend Breakout:
   Vitasoy has broken out of a 1.5-year downtrend line, signaling the end of its bearish phase and a potential bullish reversal.

2. Rounding Bottom Formation:
   A rounding bottom pattern is observed, which typically suggests a reversal from a downtrend and the beginning of an uptrend.

3. Ichimoku Indicator and Golden Crosses:
   The stock is trading above all Ichimoku indicators, confirming three bullish golden cross patterns. This is a positive technical signal that suggests upward momentum in the short term.

4. MACD Indicator:
   The MACD histogram is positive, and a MACD/Signal line crossover has occurred at the bottom, further supporting the stock’s bullish outlook.

5. Stochastic Oscillator:
   The stochastic oscillator is showing a strong rise after confirming an oversold crossover, signaling potential buying strength.

6. Rate of Change (ROC):
   The 23-period ROC continues to rise and remains above the zero line, confirming ongoing upward momentum.

7. Volume Expansion:
   Volume trends indicate healthy expansion, which supports the ongoing uptrend.

Market Sentiment

According to the report, Vitasoy’s price action suggests a promising early-stage uptrend, with multiple technical indicators pointing to further growth potential. Investors are encouraged to watch for key resistance levels, and those looking to enter the stock should consider the specified entry points.

Analyst Contact Information

• Analyst Name: Chua Wei Ren
• Contact:
  • Phone: (65) 6210 8612
  • Email: weiren.chua@cgsi.com