Far East Hotels and Entertainment Ltd Stock Forecast
Far East Hotels and Entertainment Ltd stock price ended at HK$0.620 on Friday, after losing 1.59%.
(Updated on May 17, 2024)
The Far East Hotels and Entertainment Ltd stock price fell by -1.59% on the last day (Friday, 17th May 2024) from HK$0.630 to HK$0.620. During the last trading day the stock fluctuated 4.92% from a day low at HK$0.610 to a day high of HK$0.640. The price has risen in 4 of the last 10 days and is up by 24% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -362 thousand shares and in total, 228 thousand shares were bought and sold for approximately HK$141.36 thousand.
The stockis at the upper part of a very wide and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at HK$0.640 will give a strong buy signal and a trend shift could be expected. Given the current horizontal trend, you can expect Far East Hotels and Entertainment Ltd stock with a 90% probability to be traded between HK$0.478 and HK$0.648 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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0037.HK Signals & Forecast
The Far East Hotels and Entertainment 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 HK$0.600 and HK$0.517. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, May 13, 2024, and so far it has fallen -3.13%. Further fall is indicated until a new bottom pivot has been found. Volume fell along with the price during the last trading day, which is technical positive. One should, however, note that this stock may have low liquidity in periods, which increases the general risk.
Support, Risk & Stop-loss for Far East Hotels and Entertainment Ltd stock
On the downside, the stock finds support just below today's level from accumulated volume at HK$0.550 and HK$0.510. 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, Far East Hotels and Entertainment Ltd finds support just below today's level at HK$0.550. If this is broken, then the next support from accumulated volume will be at HK$0.510 and HK$0.490.
This stock may move much during the day (volatility) and with periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved HK$0.0300 between high and low, or 4.92%. For the last week the stock has had daily average volatility of 9.31%.
The Far East Hotels and Entertainment Ltd 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$0.592 (-4.52%) (This stock has high daily movements and this gives high risk. The RSI14 is 77 and this increases the risk substantially. There is a sell signal from a pivot top found 3 days ago.)
Trading Expectations (0037.HK) For The Upcoming Trading Day Of Monday 20th
For the upcoming trading day on Monday, 20th we expect Far East Hotels and Entertainment Limited to open at HK$0.623, and during the day (based on 14 day Average True Range), to move between HK$0.590 and HK$0.650, which gives a possible trading interval of +/-HK$0.0297 (+/-4.79%) up or down from last closing price. If Far East Hotels and Entertainment Limited takes out the full calculated possible swing range there will be an estimated 9.58% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at HK$0.630 (1.61%) than the support at HK$0.550 (11.29%), 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 Far East Hotels and Entertainment Limited stock A Buy?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Far East Hotels and Entertainment Ltd stock to perform well in the short-term period.
Current score: 2.333 Buy Candidate Unchanged
Predicted Opening Price for Far East Hotels and Entertainment Limited of Monday, May 20, 2024
| Fair opening price May 20, 2024 | Current price |
|---|---|
| HK$0.623 ( 0.538%) | HK$0.620 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 0037.HK
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.653 | 5.38 % | |
| R2 | 0.642 | 3.53 % | ||
| R1 | 0.635 | 2.39 % | ||
| Current price: | 0.620 | |||
| Support | S1 | 0.612 | -1.31 % | |
| S2 | 0.605 | -2.45 % | ||
| S3 | 0.593 | -4.30 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0.640 | 3.23 % | ||
| R1 | 0.630 | 1.61 % | ||
| Current price | 0.620 | |||
| Support | S1 | 0.550 | -11.29% | |
| S2 | 0.510 | -17.74% | ||
| S3 | 0.490 | -20.97% |
FAQ
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