Guangdong Investment Limited Stock Forecast

Evaluation of Guangdong Investment Limited stock downgraded after the last trading session.
(Updated on May 20, 2024)

0270.HK Signals & Forecast

The Guangdong Investment 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$4.69 and HK$3.92. 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 Friday, May 17, 2024, and so far it has fallen -1.64%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Support, Risk & Stop-loss for Guangdong Investment Limited stock

Guangdong Investment Limited finds support from accumulated volume at HK$4.65 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved HK$0.120 between high and low, or 2.50%. For the last week, the stock has had daily average volatility of 4.15%.

The Guangdong Investment Limited 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$4.63 (-3.75%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 82 and this increases the risk substantially. There is a sell signal from a pivot top found 32 days ago.)

Trading Expectations (0270.HK) For The Upcoming Trading Day Of Tuesday 21st

For the upcoming trading day on Tuesday, 21st we expect Guangdong Investment Limited to open at HK$4.84, and during the day (based on 14 day Average True Range), to move between HK$4.63 and HK$4.99, which gives a possible trading interval of +/-HK$0.180 (+/-3.73%) up or down from last closing price. If Guangdong Investment Limited takes out the full calculated possible swing range there will be an estimated 7.47% 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$4.82 (0.21%) than the support at HK$4.65 (3.33%), 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 Guangdong Investment Limited stock A Buy?

Guangdong Investment 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. 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: 0.814 Hold/Accumulate Downgraded

Predicted Opening Price for Guangdong Investment Limited of Tuesday, May 21, 2024

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