Mengniu Dairy (2319.HK) Challenges the Record High after Investment Banks Upgrade Its Rating

Mengniu Dairy (2319.HK), Chinese dairy products manufacturer, challenges the record high after investment banks raised its rating.....

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Mengniu Dairy (2319.HK), Chinese dairy products manufacturer, challenges the record high after investment banks raised its rating.

The company was upgraded to Outperform from Neutral at Credit Suisse. The bank assigned the target price at HK$40.

Besides, Citigroup also raised the target price of the company HK$41.27 from HK$39.05. Citigroup expected the company's sales growth is likely to continue, with sales expected to accelerate in June.

From a technical point of view, the stock, as shown on the daily chart, challenges the record high level at HK$34.60 after breaking above the declining trend line drawn from the record high.

Both 20-day and 50-day moving averages are pointing up, suggesting the positive outlook.

Bullish readers could set the nearest support level at HK$31.25 (the breakout point of declining trend line), while the resistance levels would be located at HK$37.40 (127.2% retracement level) and HK$40.95 (161.8% retracement level).

Source: TradingView, GAIN Capital

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