Report Date and Broker Information
- Date: October 28, 2024
- Broker: CGS International
Overview of Shanghai Electric Group Co Ltd
Shanghai Electric Group Company Limited is primarily engaged in manufacturing power generation equipment. The company’s products span across thermal generator sets, nuclear power units, wind power equipment, power transmission, and distribution equipment. Additionally, the company manufactures environmental protection equipment. The company trades under the stock code HKG: 2727.
Stock Performance and Technical Analysis
- Current Price: HK$2.40
- Trend: Strong bullish trend
- Recent Movements: The stock has shown a significant bullish trend that began with a breakout on October 4, 2024, forming higher highs and lows, confirming an uptrend.
Key Technical Indicators
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Support Levels:
- Support 1: HK$2.18
- Support 2: HK$1.75
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Resistance Levels:
- Resistance 1: HK$2.66
- Resistance 2: HK$3.12
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Target Prices:
- Target Price 1: HK$2.68
- Target Price 2: HK$3.14
- Target Price 3: HK$3.40
- Target Price 4: HK$4.00
Market Signals
- The MACD histogram is positive, and the MACD/signal line has moved above the zero line, which indicates continued momentum.
- Directional Movement Index suggests strong bullish strength.
- Volume has significantly increased, reinforcing the breakout, and prices are currently above all Ichimoku indicators, which signals continued uptrend support.
Recent Developments and Trading Insights
- Breakout Confirmation: The stock’s recent breakout above a consolidative range on October 4 signals renewed bullish sentiment.
- Bullish Momentum on October 21: A strong gap-up occurred on October 21, further reinforced by a bullish engulfing pattern, indicating strong buyer interest.
- Price Action: Since the previous report on April 18, 2024, the stock price has exceeded the target price, realizing a gain of over 58% from the lowest buy recommendation at HK$1.50.
Analyst Commentary
The CGS International analyst recommends a Technical Buy based on the ongoing positive price action, momentum indicators, and volume confirmation. The report emphasizes the potential for the stock to continue its bullish trajectory, encouraging additional buys at the specified entry points for investors looking to capitalize on the momentum.
