Monday, December 23rd, 2024

First Pacific Co Ltd: Riding the Uptrend with Strong Technical Indicators

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:

  1. Trend Reversal: The stock has completed a 3-wave corrective structure and rebounded above the psychological level of HK$4.00.
  2. 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.
  3. 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.
  4. 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.

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