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High volatility in Kaixin Auto Holdings stock on Monday which ended trading at $8.15

StockInvest.us, 1 year ago


The Kaixin Auto Holdings stock gained 293.72% in the last trading day (Monday, 19th Oct 2020), rising from $2.07 to $8.15. , and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the day the stock fluctuated 387.27% from a day low at $2.75 to a day high of $13.40. The price has risen in 7 of the last 10 days and is up by 1501.18% over the past 2 weeks. Volume has increased in the last day along with the price, which is a positive technical sign, and, in total, 180 million more shares were traded than the day before. In total, 235 million shares were bought and sold for approximately $1.91 billion.

The stock has broken the very wide and strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $2.00, a level that may pose a second chance to hit a runner. According to fan-theory $3.42 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.

Kaixin Auto Holdings

The Kaixin Auto Holdings stock holds buy signals from both short and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $2.16 and $0.84. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday October 15, 2020 , and it has risen so far 512.78%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.

This stock may move very much during a day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $10.65 between high and low, or 387.27%. For the last week, the stock has had daily average volatility of 196.12%.

The Kaixin Auto Holdings stock is extremely overbought on RSI14 (92). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Kaixin Auto Holdings holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since last evaluation from a Strong Buy Candidate to a Hold/Accumulate candidate.

Check full Kaixin Auto Holdings forecast and analysis here.