FUTU(FUTU) ZACKS·2024-06-18 14:55Core Viewpoint - Futu Holdings Limited (FUTU) has experienced a 7.8% decline in share price over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1] Technical Analysis - The hammer chart pattern indicates a potential bottoming out, with reduced selling pressure and a shift in control from bears to bulls [1] - The hammer pattern is characterized by a small candle body and a long lower wick, signaling a potential trend reversal when formed at the bottom of a downtrend [1] - Hammer candles can appear on various timeframes and should be used alongside other bullish indicators for confirmation [1] Fundamental Analysis - Recent upward revisions in earnings estimates for FUTU serve as a bullish indicator, correlating strongly with near-term stock price movements [1] - The consensus EPS estimate for the current year has increased by 3.5% over the last 30 days, indicating strong agreement among analysts regarding improved earnings potential [1] - FUTU holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [1] - The Zacks Rank is a reliable timing indicator for investors to identify improving company prospects [1]