Anhui Honglu Steel Constructin Gp Co Ltd Stock Forecast

Anhui Honglu Steel Constructin Gp Co Ltd stock upgraded from Buy Candidate to Strong Buy Candidate after Friday trading session.
(Updated on May 17, 2024)

002541.SZ Signals & Forecast

The Anhui Honglu Steel Constructin Gp Co Ltd 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 ¥20.59 and ¥18.34. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, March 29, 2024, and so far it has risen 42.41%. 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).

Support, Risk & Stop-loss for Anhui Honglu Steel Constructin Gp Co Ltd stock

On the downside, the stock finds support just below today's level from accumulated volume at ¥19.34 and ¥17.43. 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, Anhui Honglu Steel Constructin Gp Co Ltd finds support just below today's level at ¥19.34. If this is broken, then the next support from accumulated volume will be at ¥17.43 and ¥16.93.

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 ¥1.58 between high and low, or 7.78%. For the last week, the stock has had daily average volatility of 4.99%.

Our recommended stop-loss: ¥20.60 (-3.22%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 30 days ago.)

Trading Expectations (002541.SZ) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect Anhui Honglu Steel Constructin Gp Co Ltd to open at ¥21.16, and during the day (based on 14 day Average True Range), to move between ¥20.06 and ¥22.52, which gives a possible trading interval of +/-¥1.23 (+/-5.76%) up or down from last closing price. If Anhui Honglu Steel Constructin Gp Co Ltd takes out the full calculated possible swing range there will be an estimated 11.52% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ ¥19.34, some ¥1.95 (9.16%) from the current price of ¥21.29, our system finds the risk reward attractive.

Is Anhui Honglu Steel Constructin Gp Co Ltd stock A Buy?

Anhui Honglu Steel Constructin Gp Co Ltd holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 6.525 Strong Buy Candidate Upgraded

Predicted Opening Price for Anhui Honglu Steel Constructin Gp Co Ltd of Monday, May 20, 2024

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