Hang Seng Bank Limited Stock Forecast

Green day on Monday for Hang Seng Bank Limited stock after gaining 0.286%
(Updated on May 06, 2024)

0011.HK Signals & Forecast

The Hang Seng Bank Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, 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 HK$103.84 and HK$94.31. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 10.67%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

Buy

Special Signal Notification

Double Bottom Formation

A buy signal from a double bottom formation was found on Wednesday, March 27, 2024 with a target of HK$89.15. Despite whether the objective of the signal formation has been reached the stock may continue to perform well.

Support, Risk & Stop-loss for Hang Seng Bank Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$89.40 and HK$89.30. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Hang Seng Bank Limited finds support just below today's level at HK$89.40. If this is broken, then the next support from accumulated volume will be at HK$89.30 and HK$88.30.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved HK$1.10 between high and low, or 1.05%. For the last week, the stock has had daily average volatility of 1.88%.

The Hang Seng Bank Limited stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: HK$101.76 (-3.37%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 82 and this increases the risk substantially. There is a buy signal from a pivot bottom found 13 days ago.)

Trading Expectations (0011.HK) For The Upcoming Trading Day Of Tuesday 7th

For the upcoming trading day on Tuesday, 7th we expect Hang Seng Bank Limited to open at HK$105.27, and during the day (based on 14 day Average True Range), to move between HK$103.01 and HK$107.59, which gives a possible trading interval of +/-HK$2.29 (+/-2.18%) up or down from last closing price. If Hang Seng Bank Limited takes out the full calculated possible swing range there will be an estimated 4.35% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ HK$89.40, some HK$15.90 (15.10%) from the current price of HK$105.30, our system finds the risk reward attractive.

Is Hang Seng Bank Limited stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Hang Seng Bank Limited stock to perform well in the short-term.

Current score: 4.447 Buy Candidate Unchanged

Predicted Opening Price for Hang Seng Bank Limited of Tuesday, May 7, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.