Shanghai Kehua Bio-Engineering Co Ltd Stock Forecast

Shanghai Kehua Bio-Engineering Co Ltd stock upgraded to Buy Candidate.
(Updated on May 09, 2024)

002022.SZ Signals & Forecast

Mostly positive signals in the chart today. The Shanghai Kehua Bio-Engineering Co Ltd stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, 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 ¥7.44 and ¥7.60. 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 14.95%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). 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.

Support, Risk & Stop-loss for Shanghai Kehua Bio-Engineering Co Ltd stock

Shanghai Kehua Bio-Engineering Co Ltd finds support from accumulated volume at ¥7.42 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

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 ¥0.450 between high and low, or 6.13%. For the last week, the stock has had daily average volatility of 4.87%.

The Shanghai Kehua Bio-Engineering Co Ltd stock is extremely overbought on RSI14 (90). This increases the short-term risk substantially. Since the Shanghai Kehua Bio-Engineering Co Ltd has been rising for 10 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: ¥7.47 (-2.91%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 90 and this increases the risk substantially. There is a buy signal from a pivot bottom found 14 days ago.)

Trading Expectations (002022.SZ) For The Upcoming Trading Day Of Friday 10th

For the upcoming trading day on Friday, 10th we expect Shanghai Kehua Bio-Engineering Co Ltd to open at ¥7.61, and during the day (based on 14 day Average True Range), to move between ¥7.30 and ¥8.08, which gives a possible trading interval of +/-¥0.387 (+/-5.03%) up or down from last closing price. If Shanghai Kehua Bio-Engineering Co Ltd takes out the full calculated possible swing range there will be an estimated 10.06% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at ¥7.42 (3.51%) than the resistance at ¥7.97 (3.64%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Shanghai Kehua Bio-Engineering Co Ltd stock A Buy?

Several short-term signals are positive, despite the stock being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.

Current score: 2.995 Buy Candidate Upgraded

Predicted Opening Price for Shanghai Kehua Bio-Engineering Co Ltd of Friday, May 10, 2024

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