Date of Report: September 24, 2024
Broker: CGS International Securities
Company Overview
Smoore International Holdings Co Ltd (6969.HK) is a Hong Kong-based company specializing in vaping technology solutions. The company is recognized for its advanced research and development capabilities. Smoore manufactures and produces both closed and open system vaping devices, vaping components, and other related products. Smoore markets its products primarily in Hong Kong.
Recent Stock Performance
As of September 24, 2024, Smoore’s last trading price was HKD 10.22. The report highlights a potential for bullish upside continuation, with strong technical indicators supporting further gains. Key levels for the stock include:
- Entry Price(s): HKD 10.22, 9.40, 8.60
- Support Levels: HKD 9.42 and 7.82
- Resistance Levels: HKD 5.50 and 6.26
- Target Prices:
- Target 1: HKD 11.20
- Target 2: HKD 14.30
- Target 3: HKD 18.00
- Target 4: HKD 19.40
The recommended stop loss for the position is set at HKD 7.64.
Technical Analysis
Smoore International is experiencing strong bullish momentum. The stock has recently broken above a falling wedge formation, which is typically a bullish technical pattern. Below are key technical indicators that suggest further upside:
- Price Action: The stock has shown a strong breakout above its falling wedge formation, supported by increased trading volume.
- Ichimoku Indicator: A “three bullish golden cross” has been observed, indicating positive momentum.
- MACD/Signal Line: Both lines remain above the zero line, with a positive histogram, signaling ongoing bullish strength.
- Stochastic Oscillator: The stock has risen above the oversold region, crossing the 20-line, which indicates a potential upward move.
- 23-period Rate of Change (ROC): The ROC has risen above the zero line, suggesting bullish momentum.
- Directional Movement Index (DMI): The DMI confirms the strength of the bullish trend.
- Volume Analysis: Volume has been above the 20-period average for three consecutive days, further affirming strong buying pressure.
Analyst Commentary
According to the report prepared by CGS International Securities analyst Chua Wei Ren, CMT, the current technical setup for Smoore International Holdings is highly favorable. The combination of a strong breakout, supportive technical indicators, and rising volume suggests that the stock is well-positioned for a bullish continuation in the near term.
Conclusion
Smoore International Holdings Co Ltd appears to be entering a bullish phase, with multiple technical indicators supporting further upside. The report highlights several price targets, indicating potential gains for investors who enter at current levels.
