Shanghai Industrial Holdings Limited Stock Forecast

Shanghai Industrial Holdings Limited stock upgraded from Buy Candidate to Strong Buy Candidate after Tuesday trading session.
(Updated on May 07, 2024)

0363.HK Signals & Forecast

Mostly positive signals in the chart today. The Shanghai Industrial Holdings 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$11.17 and HK$10.63. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 8.57%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal. The stock had a Golden Star Signal on Thursday, February 15, 2024 in the long-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 Shanghai Industrial Holdings Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$10.36 and HK$10.02. 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, Shanghai Industrial Holdings Limited finds support just below today's level at HK$10.36. If this is broken, then the next support from accumulated volume will be at HK$10.02 and HK$9.97.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved HK$0.180 (1.60%) between high and low. For the last week, the stock has had daily average volatility of 1.99%.

The Shanghai Industrial Holdings 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$10.91 (-4.31%) (This stock has low daily movements and this gives low risk. The RSI14 is 83 and this increases the risk substantially. There is a buy signal from a pivot bottom found 14 days ago.)

Trading Expectations (0363.HK) For The Upcoming Trading Day Of Wednesday 8th

For the upcoming trading day on Wednesday, 8th we expect Shanghai Industrial Holdings Limited to open at HK$11.38, and during the day (based on 14 day Average True Range), to move between HK$11.16 and HK$11.64, which gives a possible trading interval of +/-HK$0.240 (+/-2.10%) up or down from last closing price. If Shanghai Industrial Holdings Limited takes out the full calculated possible swing range there will be an estimated 4.21% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ HK$10.36, some HK$1.04 (9.12%) from the current price of HK$11.40, our system finds the risk reward attractive.

Is Shanghai Industrial Holdings Limited stock A Buy?

Shanghai Industrial Holdings Limited holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 5.744 Strong Buy Candidate Upgraded

Predicted Opening Price for Shanghai Industrial Holdings Limited of Wednesday, May 8, 2024

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