Date: October 21, 2024
Broker: CGS International Securities
Company Overview
China Tobacco International (HK) Co Ltd, listed under ticker 6055 on the Hong Kong Stock Exchange, engages primarily in the international trading of tobacco products. The company’s services include the import and export of tobacco leaf products, cigarettes export, new tobacco products export, and related services. It serves customers mainly in China and Southeast Asia.
Recent Stock Performance
The stock of China Tobacco International (HK) Co Ltd has shown a strong uptrend, marked by consistent price growth. As of the latest report, the last trading price was HKD 21.95. The company’s share price has experienced a breakout from a downtrend line that began in July 2019, indicating a positive reversal in trend.
Technical Analysis
Several technical indicators highlight the strong performance and bullish sentiment for the stock:
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Uptrend Indicators:
- The stock has consistently formed higher highs and lows, a classic indication of an uptrend.
- MACD (Moving Average Convergence Divergence) histogram is positive, with both MACD and Signal lines rising above the zero line, signaling continued momentum.
- The Stochastic Oscillator is also trending upwards, confirming bullish momentum.
- The 23-period ROC (Rate of Change) remains above the zero line, suggesting strength in price momentum.
- DMI (Directional Movement Index) shows a return of bullish strength, indicating positive buying pressure.
- Trading volume has been expanding, which further validates the uptrend.
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Support and Resistance Levels:
- Entry Prices: HKD 21.95, 20.00, and 16.80.
- Support Levels: First support is at HKD 20.95, and second support is at HKD 16.98.
- Stop Loss: HKD 15.50.
- Resistance Levels: First resistance is at HKD 24.85, and second resistance at HKD 27.50.
- Target Prices: Short to medium-term targets are set at HKD 24.80, 26.00, 30.50, and 33.50.
Analyst Insights
The technical analysis suggests that China Tobacco International (HK) is currently in a bullish phase, with a steady stream of upward movement expected to continue. Key technical indicators, including MACD, ROC, and DMI, all point towards sustained momentum. The stock has broken out of a multi-year downtrend, and current price action indicates potential for further gains.
Summary
China Tobacco International (HK) Co Ltd is showing strong signs of a continued upward trend, driven by positive technical indicators and robust trading volume. Investors may consider the recommended entry prices and observe support and resistance levels for strategic trading opportunities.
