Bullish Momentum Emerging: DFI Retail Group Holdings Ltd Breaks Long-Term Downtrend

Date: October 8, 2024
Broker: CGS International Securities Pte. Ltd.

Company Overview
DFI Retail Group Holdings Ltd operates as a holding company focused on retail businesses. Through its subsidiaries, the company runs a range of retail formats, including supermarkets, drugstores, and convenience stores, catering to customers across Asia.

Stock Performance and Technical Analysis
DFI Retail Group Holdings Ltd is experiencing a bullish trend, which is at an early stage. The stock has recently broken out of a long-term downtrend, signaling potential growth ahead. The following key technical indicators support this positive momentum:

1. Trendline Break:

   • The stock has broken out of a long-term downtrend line and mid-term range, followed by the formation of higher highs and higher lows, which indicates an upward trajectory.

2. Ichimoku Indicators:

   • Prices are trending above all Ichimoku indicators, reinforcing the bullish momentum.

3. MACD Indicator:

   • The MACD/Signal line has performed a crossover at the bottom, with a positive histogram indicating strong upward momentum.

4. Stochastic Oscillator:

   • The oscillator remains range-bound above the 80-line, which suggests that momentum is still sustaining.

5. Rate of Change (ROC):

   • The 23-period ROC is rising and has rebounded above the zero line, signaling positive momentum.

6. Directional Movement Index:

   • The bullish strength signal from the directional movement index remains valid, further indicating upward movement.

7. Volume Trends:

   • There has been healthy expansion in trading volume, supporting the price movement.

Price Levels and Targets

• Entry Prices: 2.30, 2.10, 1.86
• Support Levels:
  • Support 1: 2.10
  • Support 2: 1.84
• Stop Loss: 1.68
• Resistance Levels:
  • Resistance 1: 2.35
  • Resistance 2: 2.76
• Target Prices:
  • Target 1: 2.68
  • Target 2: 2.75
  • Target 3: 3.08
  • Target 4: 3.30

Technical Snapshot Summary
DFI Retail Group Holdings Ltd is seeing a significant upside breakout, supported by strong bullish price action. Key technical indicators, such as the MACD crossover, rising ROC, and sustained momentum from the stochastic oscillator, provide a strong foundation for continued growth. Additionally, increasing volume confirms the potential for a sustained upward trend.

Analyst Contact Information

• Analyst: CHUA Wei Ren, CMT
• Contact: +65 6210 8612
• Email: weiren.chua@cgsi.com