Broker Name and Date
Report Date: September 24, 2024
Broker: CGS-CIMB Securities
Company Overview
Mermaid Maritime PCL is a provider of drilling and subsea engineering services for the offshore oil and gas industry. Its subsea engineering division serves clients across several regions, including Southeast Asia, India, China, Sakhalin, the North Sea, the Middle East, and South America.
Stock Performance Overview
As of the report dated September 24, 2024, Mermaid Maritime PCL shows bullish reversal signals, indicating a potential strong upside. The last recorded price of the stock was S$0.158.
Technical Analysis
The technical analysis for Mermaid Maritime PCL reveals the following key factors contributing to the stock’s potential rise:
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Breakout from Falling Wedge Formation
The stock has broken out of the falling wedge formation with a strong bar, followed by a breakout from the pennant pattern, supported by a spike in volume. This suggests a bullish reversal in the stock’s trend.
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Ichimoku Indicator
The Ichimoku indicator has shown two out of three bullish crossovers, further reinforcing the potential for an upward movement in the stock price.
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Stochastic Oscillator
The Stochastic Oscillator confirms an oversold crossover, which can signal a potential buying opportunity as the stock may be poised to rebound.
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23-Period ROC (Rate of Change)
The 23-period ROC remains above the zero line, indicating positive momentum for the stock.
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Directional Movement Index (DMI)
The DMI shows early signs of bullish strength returning to the stock.
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Volume Analysis
A rise in volume above the 20-period average highlights renewed buying pressure, signaling strong investor interest.
Price Targets and Key Levels
- Entry Prices: S$0.158, S$0.135, S$0.120
- Support Levels:
- Support 1: S$0.125
- Support 2: S$0.113
- Stop Loss: S$0.110
- Resistance Levels:
- Resistance 1: S$0.162
- Resistance 2: S$0.225
- Target Prices:
- Target Price 1: S$0.200
- Target Price 2: S$0.230
- Target Price 3: S$0.250
- Target Price 4: S$0.300
Conclusion
Mermaid Maritime PCL’s technical indicators suggest a potential bullish reversal, with multiple signals pointing to renewed strength and upward momentum. The stock presents a promising opportunity for investors, with clearly defined entry points, stop losses, and target prices.
