Date: October 22, 2024
Broker Name: CGS International Securities
Company Overview
First Pacific Company Limited is an investment holding company operating primarily in the Asia-Pacific region. It focuses on sectors such as consumer food products, infrastructure, natural resources, and telecommunications.
Technical Analysis
Stock Information:
- Stock Code: 142 (HKG)
- Last Price: HK$4.43
Key Technical Indicators:
- Trend: The stock is in an early uptrend, with a positive continuation observed in the price action.
- Support Levels:
- Support 1: HK$4.22
- Support 2: HK$3.76
- Resistance Levels:
- Resistance 1: HK$4.47
- Resistance 2: HK$3.76
- Stop Loss: HK$3.25
- Entry Price(s): HK$4.43, HK$4.04, HK$3.65
- Target Prices:
- Target 1: HK$4.84
- Target 2: HK$5.00
- Target 3: HK$6.60
- Target 4: HK$8.40
Technical Snapshot
The technical analysis highlights a strong continuation of the uptrend:
- Trend Reversal: The stock has completed a 3-wave corrective structure and rebounded above the psychological level of HK$4.00.
- Resistance Breakout: The stock shows a steady uptrend after breaking the previous resistance of HK$4.07, which has now turned into a support level. This was the 2017 high, and breaking this level indicates a longer-term bullish trend.
- Technical Indicators:
- Ichimoku Indicators: The stock is trending above all Ichimoku indicators, suggesting strong support for the uptrend.
- MACD: The MACD histogram is positive, and both the MACD and signal lines continue to rise above the zero line, indicating bullish momentum.
- ROC (Rate of Change): The 23-period ROC dipped slightly but remains elevated above the zero line, supporting the ongoing uptrend.
- Directional Movement Index: The index maintains a bullish strength signal, further indicating that the uptrend is intact.
- Volume Trends: The volume trend is expanding in a healthy manner, which typically confirms the sustainability of the uptrend.
Analyst Insights
The analysis, conducted by Chua Wei Ren (CMT), emphasizes that the long-term trend for First Pacific Co Ltd appears bullish, supported by several positive technical indicators:
- Psychological Level: A significant rebound was observed above the HK$4.00 psychological level.
- Golden Cross Formation: A bullish golden cross was noted, adding further confidence in the continuation of the uptrend.
- Market Sentiment: Overall, the stock’s performance suggests a strong possibility of reaching higher target prices, backed by solid volume trends and bullish momentum.
