IRICO Group New Energy Company Limited Stock Forecast

High volatility in IRICO Group New Energy Company Limited stock price on Tuesday which ended trading at HK$3.08
(Updated on May 07, 2024)

0438.HK Signals & Forecast

The IRICO Group New Energy Company Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at HK$2.96 and HK$2.99. 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 06, 2024, and so far it has fallen -1.91%. Further fall is indicated until a new bottom pivot has been found. IRICO Group New Energy Company Limited 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.

Support, Risk & Stop-loss for IRICO Group New Energy Company Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$2.90 and HK$2.88. 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, IRICO Group New Energy Company Limited finds support just below today's level at HK$2.90. If this is broken, then the next support from accumulated volume will be at HK$2.88 and HK$2.76.

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$0.320 between high and low, or 10.81%. For the last week, the stock has had daily average volatility of 4.20%.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (0438.HK) For The Upcoming Trading Day Of Wednesday 8th

For the upcoming trading day on Wednesday, 8th we expect IRICO Group New Energy Company Limited to open at HK$3.11, and during the day (based on 14 day Average True Range), to move between HK$2.95 and HK$3.21, which gives a possible trading interval of +/-HK$0.129 (+/-4.19%) up or down from last closing price. If IRICO Group New Energy Company Limited takes out the full calculated possible swing range there will be an estimated 8.38% 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$3.23 (4.87%) than the support at HK$2.90 (5.84%), 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 IRICO Group New Energy Company Limited stock A Buy?

IRICO Group New Energy Company Limited holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock. 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 Sell candidate.

Current score: -2.173 Sell Candidate Downgraded

Predicted Opening Price for IRICO Group New Energy Company Limited of Wednesday, May 8, 2024

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