Futu - a Chinese online brokerage & wealth management platform has finally broken its resistance of accumulation zone forming an ascending-triangle chart pattern.
This stock has tremendous potential. Let's know why:
1. Accumulation Completed Futu entered accumulation stage (stage 1) somewhere in December 2021 following a steep fall inline with general market decline. Its growth was contained. But after a long accumulation period of about 1 year it has finally broken its accumulation zone with ascending triangle pattern, and has swiftly entered advanced stage (stage 2). One word of caution here: Buying volumes are not so high, but golden cross is imminent.
2. Earnings
Futu's revenues, which had slowed down in FY-2022, have again geared up with PQ growth of 11% in the recent quarter. Likewise, net income has grown 17%. These increases are not so high as they were in the previous years when Futu did mind-boggling growth, but mild gains are quite possible. Moreover, as it is a fast growing brokerage platform, its growth will resonate with the general market growth.