GURE - Gulf Resources Fri 13'th Jan 2017
Stock analysis for Fri 13'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-11
Gulf Resources Stock Analysis
Gulf Resources gained 1.36% in the last trading day rising from, USD 2.20 to USD 2.23. The price has risen in 7 of the last 10 days days and is up by 11.5% over the past 2 weeks. Volume fell in the last day by -11 533 shares and ,in total, 35 262 shares bought and sold for approximately USD 78 634. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Gulf Resources lays in the middle of a very wide and weak falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -2.5% during the next 3 months and, with 90% probability will hold a price between USD 1.89 and USD 2.43 at the end of this period.
Gulf Resources holds buy signals from both short- and long-term moving averages, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down there will be some support from the lines at USD 2.13 and USD 2.17. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday January 05, 2017, which indicates further gains until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the share price increased. This causes a divergence and may be considered as an early warning, but it may not be. The very low volume increases the risk and reduces the other technical signals issued.
* Golden Star Signal* is when the short-term moving average, the long-term moving average, and priceline meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
Relative Strength Index (RSI)
RSI14 is 65 and the stock is currently not being overbought or oversold
Support & Resistance
Gulf Resources finds support from accumulated volume at USD 2.20, USD 2.15, and USD 2.08. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 2.32, USD 2.42 and USD 2.53.
The stock is about to test the resistance from accumulated volume at USD 2.32 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
In general the stock tends to have controlled movements, but the low liquidity has increased the risk substantially.
Our recommended stoploss: USD 2.15 (-3.59%) ( based on support and risk)
Several short-term signals are positive and despite the stock being in a weak falling trend we conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term.