Hon Kwok Land Investment Co, Ltd Stock Forecast

Weaker technical forecast for Hon Kwok Land Investment Co, Ltd as stock downgraded to Hold/Accumulate.
(Updated on May 17, 2024)

0160.HK Signals & Forecast

The Hon Kwok Land Investment 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 HK$1.66 and HK$1.49. 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 Thursday, May 16, 2024, and so far it has fallen -0.581%. Further fall is indicated until a new bottom pivot has been found. Hon Kwok Land Investment Co, Ltd gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The very low volume increases the risk and reduces the other technical signals issued. The stock had a Golden Star Signal on Friday, March 15, 2024 in the short-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Support, Risk & Stop-loss for Hon Kwok Land Investment Co, Ltd stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$1.49 and HK$1.40. 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, Hon Kwok Land Investment Co, Ltd finds support just below today's level at HK$1.49. If this is broken, then the next support from accumulated volume will be at HK$1.40 and HK$1.38.

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 HK$0 between high and low, or 0%. For the last week, the stock has had daily average volatility of 2.38%.

The Hon Kwok Land Investment Co, 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$1.67 (-2.46%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 88 and this increases the risk substantially. There is a sell signal from a pivot top found 1 day ago.)

Trading Expectations (0160.HK) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect Hon Kwok Land Investment Company, Limited to open at HK$1.71, and during the day (based on 14 day Average True Range), to move between HK$1.67 and HK$1.75, which gives a possible trading interval of +/-HK$0.0376 (+/-2.20%) up or down from last closing price. If Hon Kwok Land Investment Company, Limited takes out the full calculated possible swing range there will be an estimated 4.40% 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$1.72 (0.58%) than the support at HK$1.49 (12.87%), 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 Hon Kwok Land Investment Company, Limited stock A Buy?

Hon Kwok Land Investment Co, Ltd holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.

Current score: 0.000 Hold/Accumulate Downgraded

Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.

Predicted Opening Price for Hon Kwok Land Investment Company, Limited of Monday, May 20, 2024

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