Guangzhou Jointas Chemical Co Ltd Stock Forecast

Guangzhou Jointas Chemical Co Ltd stock downgraded to Sell Candidate
(Updated on Apr 30, 2024)

002909.SZ Signals & Forecast

There are mixed signals in the stock today. The Guangzhou Jointas Chemical 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 ¥5.63. On a fall, the stock will find some support from the short-term average at ¥5.15. 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. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 8.77%. Further rise is indicated until a new top pivot has been found.

Support, Risk & Stop-loss for Guangzhou Jointas Chemical Co Ltd stock

On the downside, the stock finds support just below today's level from accumulated volume at ¥4.66 and ¥4.52. 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, Guangzhou Jointas Chemical Co Ltd finds support just below today's level at ¥4.66. If this is broken, then the next support from accumulated volume will be at ¥4.52 and ¥4.35.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved ¥0.240 between high and low, or 4.65%. For the last week, the stock has had daily average volatility of 3.99%.

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

Trading Expectations (002909.SZ) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect Guangzhou Jointas Chemical Co Ltd to open at ¥5.26, and during the day (based on 14 day Average True Range), to move between ¥4.82 and ¥5.60, which gives a possible trading interval of +/-¥0.386 (+/-7.41%) up or down from last closing price. If Guangzhou Jointas Chemical Co Ltd takes out the full calculated possible swing range there will be an estimated 14.82% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at ¥5.32 (2.11%) than the support at ¥4.66 (10.56%), 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 Guangzhou Jointas Chemical Co Ltd stock A Buy?

Guangzhou Jointas Chemical 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. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.

Current score: -2.491 Sell Candidate Downgraded

Predicted Opening Price for Guangzhou Jointas Chemical Co Ltd of Monday, May 6, 2024

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