China Foods Limited Stock Forecast
China Foods Limited stock upgraded to Hold/Accumulate.
(Updated on Jun 20, 2024)
The China Foods Limited stock price gained 0.690% on the last trading day (Thursday, 20th Jun 2024), rising from HK$2.90 to HK$2.92. During the last trading day the stock fluctuated 2.42% from a day low at HK$2.89 to a day high of HK$2.96. The price has risen in 5 of the last 10 days but is still down by -3.31% for this period. Volume fell on the last day by -552 thousand shares and in total, 378 thousand shares were bought and sold for approximately HK$1.10 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies in the lower part of a weak rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at HK$2.90 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 2.80% during the next 3 months and, with a 90% probability hold a price between HK$2.98 and HK$3.21 at the end of this 3-month period.
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0506.HK Signals & Forecast
A buy signal was issued from a pivot bottom point on Wednesday, June 19, 2024, and so far it has risen 0.690%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. The China Foods Limited stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at HK$2.98 and HK$3.01. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not.
A sell signal from a double top formation was found on Monday, June 17, 2024 and based on theory for this formation the price should fall by -1.12% to HK$2.89 within 27 trading days since signal was issued (Thursday, July 25, 2024).
Support, Risk & Stop-loss for China Foods Limited stock
China Foods Limited finds support from accumulated volume at HK$2.91 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and therefore the general risk is considered very low. However, be aware of low or falling volume and make sure to keep an eye on the stock During the last day, the stock moved HK$0.0700 between high and low, or 2.42%. For the last week the stock has had daily average volatility of 2.04%
Our recommended stop-loss: HK$2.76 (-5.43%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 3 days ago.)
Trading Expectations (0506.HK) For The Upcoming Trading Day Of Friday 21st
For the upcoming trading day on Friday, 21st we expect China Foods Limited to open at HK$2.92, and during the day (based on 14 day Average True Range), to move between HK$2.86 and HK$2.98, which gives a possible trading interval of +/-HK$0.0599 (+/-2.05%) up or down from last closing price. If China Foods Limited takes out the full calculated possible swing range there will be an estimated 4.10% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at HK$2.91 (0.34%) than the resistance at HK$2.93 (0.34%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is China Foods Limited stock A Buy?
China Foods Limited holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation 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 Sell to a Hold/Accumulate candidate.
Current score: 0.574 Hold/Accumulate Upgraded
Predicted Opening Price for China Foods Limited of Friday, June 21, 2024
| Fair opening price June 21, 2024 | Current price |
|---|---|
| HK$2.92 ( 0.114%) | HK$2.92 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 0506.HK
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 2.99 | 2.51% |
| R2 | 2.97 | 1.60% |
| R1 | 2.95 | 1.03% |
| Price | 2.92 | |
| S1 | 2.90 | -0.80% |
| S2 | 2.88 | -1.37% |
| S3 | 2.85 | -2.28% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 3.03 | 3.77% |
| R2 | 3.00 | 2.74% |
| R1 | 2.93 | 0.342% |
| Price | 2.92 | |
| S1 | 2.91 | -0.342% |
| S2 | 2.90 | -0.685% |
| S3 | 0 | - |
0506 Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Jun 18, 2024 | Jun 18, 2024 | Jul 10, 2024 | HK$0.161 | 5.51% |
| 2 | Jun 13, 2023 | Jun 13, 2023 | Jun 13, 2023 | HK$0.133 | 5.34% |
| 3 | Jun 14, 2022 | Jun 14, 2022 | Jun 14, 2022 | HK$0.125 | 4.84% |
| 4 | Jun 08, 2021 | Jun 08, 2021 | Jun 08, 2021 | HK$0.106 | 3.46% |
| 5 | Jun 09, 2020 | Jun 09, 2020 | Jun 09, 2020 | HK$0.0480 | 1.71% |
FAQ
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