Honghua Group Limited Stock Forecast
Stronger technical forecast for Honghua Group Limited stock price after Friday trading.
(Updated on May 10, 2024)
The Honghua Group Limited stock price gained 3.45% on the last trading day (Friday, 10th May 2024), rising from HK$0.0870 to HK$0.0900. During the last trading day the stock fluctuated 3.45% from a day low at HK$0.0870 to a day high of HK$0.0900. The price has risen in 5 of the last 10 days and is up by 8.43% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 1 million more shares were traded than the day before. In total, 2 million shares were bought and sold for approximately HK$195.12 thousand.
The stock lies the upper part of a wide and falling trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at HK$0.0922 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -9.32% during the next 3 months and, with a 90% probability hold a price between HK$0.0735 and HK$0.0836 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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0196.HK Signals & Forecast
The Honghua Group Limited 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$0.0891 and HK$0.0873. 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). Honghua Group Limited has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk. 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 Friday, May 03, 2024, and so far it has fallen -3.23%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Honghua Group Limited stock
Honghua Group Limited finds support from accumulated volume at HK$0.0880 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
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$0.0030 between high and low, or 3.45%. For the last week, the stock has had daily average volatility of 4.11%.
Our recommended stop-loss: HK$0.0858 (-4.69%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 5 days ago.)
Trading Expectations (0196.HK) For The Upcoming Trading Day Of Monday 13th
For the upcoming trading day on Monday, 13th we expect Honghua Group Limited to open at HK$0.0890, and during the day (based on 14 day Average True Range), to move between HK$0.0868 and HK$0.0932, which gives a possible trading interval of +/-HK$0.0032 (+/-3.60%) up or down from last closing price. If Honghua Group Limited takes out the full calculated possible swing range there will be an estimated 7.21% 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$0.0910 (1.11%) than the support at HK$0.0880 (2.22%), 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 Honghua Group Limited stock A Buy?
Honghua Group Limited 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. We have upgraded our analysis conclusion for this stock since the last evaluation from a Strong Sell to a Hold/Accumulate candidate.
Current score: -0.606 Hold/Accumulate Upgraded
Predicted Opening Price for Honghua Group Limited of Monday, May 13, 2024
| Fair opening price May 13, 2024 | Current price |
|---|---|
| HK$0.0890 ( 1.11%) | HK$0.0900 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 0196.HK
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.0920 | 2.22 % | |
| R2 | 0.0909 | 0.95 % | ||
| R1 | 0.0901 | 0.162 % | ||
| Current price: | 0.0900 | |||
| Support | S1 | 0.0879 | -2.38 % | |
| S2 | 0.0871 | -3.17 % | ||
| S3 | 0.0860 | -4.44 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.0930 | 3.33 % | |
| R2 | 0.0920 | 2.22 % | ||
| R1 | 0.0910 | 1.11 % | ||
| Current price | 0.0900 | |||
| Support | S1 | 0.0880 | -2.22% | |
| S2 | 0.0870 | -3.33% | ||
| S3 | 0.0850 | -5.56% |
0196 Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | May 27, 2014 | May 27, 2014 | May 27, 2014 | HK$0.0600 | 3.35% |
| 2 | May 28, 2013 | May 28, 2013 | May 28, 2013 | HK$0.0600 | 1.56% |
| 3 | May 24, 2012 | May 24, 2012 | May 24, 2012 | HK$0.0400 | 3.33% |
| 4 | May 26, 2009 | May 26, 2009 | May 26, 2009 | HK$0.0600 | 3.68% |
| 5 | Sep 29, 2008 | Sep 29, 2008 | Sep 29, 2008 | HK$0.100 | 7.04% |
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