Guangshen Railway Company Limited Stock Forecast

On Monday, Guangshen Railway Company Limited stock price gained an impressive 11.48%
(Updated on May 06, 2024)

0525.HK Signals & Forecast

The Guangshen Railway Company 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$2.09 and HK$1.89. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 05, 2024, and so far it has risen 30.90%. 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.

Support, Risk & Stop-loss for Guangshen Railway Company Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$2.13 and HK$1.97. 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, Guangshen Railway Company Limited finds support just below today's level at HK$2.13. If this is broken, then the next support from accumulated volume will be at HK$1.97 and HK$1.86.

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$0.160 between high and low, or 7.24%. For the last week, the stock has had daily average volatility of 5.43%.

The Guangshen Railway Company Limited stock is extremely overbought on RSI14 (78). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Our recommended stop-loss: HK$2.20 (-5.44%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 78 and this increases the risk substantially. There is a buy signal from a pivot bottom found 20 days ago.)

Trading Expectations (0525.HK) For The Upcoming Trading Day Of Tuesday 7th

For the upcoming trading day on Tuesday, 7th we expect Guangshen Railway Company Limited to open at HK$2.30, and during the day (based on 14 day Average True Range), to move between HK$2.24 and HK$2.42, which gives a possible trading interval of +/-HK$0.0940 (+/-4.03%) up or down from last closing price. If Guangshen Railway Company Limited takes out the full calculated possible swing range there will be an estimated 8.07% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ HK$2.13, some HK$0.200 (8.58%) from the current price of HK$2.33, our system finds the risk reward attractive.

Is Guangshen Railway Company Limited stock A Buy?

Guangshen Railway Company 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: 0.000 Hold/Accumulate Downgraded

Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.

Predicted Opening Price for Guangshen Railway Company Limited of Tuesday, May 7, 2024

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