Date: October 18, 2024
Broker: CGS International

Overview of CLP Holdings Ltd

CLP Holdings Limited provides vertically integrated electricity supply services in Hong Kong. It is also involved in energy generation and retailing in Australia and owns power generation assets across China, India, Southeast Asia, and Taiwan. The company’s power sources include coal, gas, and distribution services.

Stock Performance and Technical Analysis

The report indicates a short-term bearish correction for CLP Holdings Ltd. Key technical analysis points are as follows:

1. Price Levels:

   • Last Price: 66.20
   • Entry Prices: 66.20, 68.60, 70.90
   • Support Levels:
     • Support 1: 66.00
     • Support 2: 60.90
   • Resistance Levels:
     • Resistance 1: 70.70
     • Resistance 2: 73.25
   • Target Prices:
     • Target 1: 62.20
     • Target 2: 59.50
     • Target 3: 57.20
     • Target 4: 50.00
   • Stop Loss: 74.05

2. Technical Indicators:

   • Price Action: The stock has confirmed a bearish reversal, reaching the second target price since the previous report on June 14, 2023.
   • Volume: The stock has experienced sharp declines with strong volume, confirming a rounding top formation.
   • Bearish Patterns:
     • Bearish Flag Formation: Indicates potential continued downward movement.
     • Ichimoku Analysis: Shows strong bearish signals, with a likelihood of breaking below the Kumo cloud.
   • MACD Analysis: Negative MACD histogram, with the MACD and signal lines crossing over at the top, supporting the bearish outlook.
   • Stochastic Oscillator: Confirms an overbought crossover signal.
   • Rate of Change (ROC): The 23-period ROC has dipped below the zero line, affirming the bearish divergence.

Analyst Commentary

The report suggests that CLP Holdings Ltd is experiencing a short-term bearish trend with indications of continued downside potential. Technical indicators support this outlook, highlighting various bearish formations and crossovers. The bearish sentiment is further reinforced by the observed patterns in MACD, Ichimoku cloud, and other key technical indicators.

Conclusion

Based on the analysis dated October 18, 2024, CGS International recommends caution on CLP Holdings Ltd due to the ongoing bearish trend, with potential support levels around 60.90 and lower target prices suggesting further downside risks.