Bears are Losing Control Over Futu Holdings (FUTU), Here's Why It's a 'Buy' Now

Core Viewpoint - Futu Holdings Limited (FUTU) has experienced a recent downtrend, losing 7.9% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with selling pressure likely subsiding, which is a bullish signal for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, suggesting that despite a downtrend, buyers are starting to emerge [4][5]. - The occurrence of this pattern at the bottom of a downtrend signals that bears may be losing control, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for FUTU, which is a bullish indicator, as it typically leads to price appreciation [7]. - The consensus EPS estimate for the current year has increased by 0.5% over the last 30 days, reflecting analysts' agreement on the company's potential for better earnings [8]. - FUTU holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which historically indicates strong market outperformance [9][10].