Shenzhen Hongtao Group Co Ltd Stock Forecast

High volatility in Shenzhen Hongtao Group Co Ltd stock price on Friday which ended trading at ¥0.93
(Updated on May 17, 2024)

002325.SZ Signals & Forecast

A buy signal was issued from a pivot bottom point on Wednesday, May 15, 2024, and so far it has risen 9.41%. 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Shenzhen Hongtao Group Co Ltd stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at ¥1.35. On a fall, the stock will find some support from the short-term average at ¥0.92. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal.

Support, Risk & Stop-loss for Shenzhen Hongtao Group Co Ltd stock

Shenzhen Hongtao Group Co Ltd finds support from accumulated volume at ¥0.89 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move very much during the 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 ¥0.120 between high and low, or 14.12%. For the last week, the stock has had daily average volatility of 12.13%.

Shenzhen Hongtao Group Co Ltd is oversold on RSI14 (21). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (002325.SZ) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect Shenzhen Hongtao Group Co Ltd to open at ¥0.92, and during the day (based on 14 day Average True Range), to move between ¥0.789 and ¥1.07, which gives a possible trading interval of +/-¥0.141 (+/-15.17%) up or down from last closing price. If Shenzhen Hongtao Group Co Ltd takes out the full calculated possible swing range there will be an estimated 30.34% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at ¥0.97 (4.30%) than the support at ¥0.89 (4.30%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Shenzhen Hongtao Group Co Ltd stock A Buy?

Shenzhen Hongtao Group Co Ltd holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock.

Current score: -4.310 Sell Candidate Unchanged

Predicted Opening Price for Shenzhen Hongtao Group Co Ltd of Monday, May 20, 2024

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