Hongkong Chinese Limited Stock Forecast

Hongkong Chinese Limited stock price up 1.75% on Thursday
(Updated on Jun 20, 2024)

0655.HK Signals & Forecast

There are few to no technical positive signals at the moment. The Hongkong Chinese Limited stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at HK$0.292. On a fall, the stock will find some support from the short-term average at HK$0.289. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. A sell signal was issued from a pivot top point on Friday, May 31, 2024, and so far it has fallen -10.77%. Further fall is indicated until a new bottom pivot has been found. 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 not be. The very low volume increases the risk and reduces the other technical signals issued.

Support, Risk & Stop-loss for Hongkong Chinese Limited stock

Hongkong Chinese Limited finds support from accumulated volume at HK$0.280 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during the day, but be aware of low or falling volume as this increases the risk. During the last day, the stock moved HK$0.0100 between high and low, or 3.45%. For the last week the stock has had daily average volatility of 1.74%.

Hongkong Chinese Limited is oversold on RSI14 (11). Some stocks may fall long and hard while being oversold on RSI, but stocks that are heavily oversold on RSI often pose good re-bounce chance and played well it can be a buy candidate.

Our recommended stop-loss: HK$0.274 (-5.57%) (This stock has medium daily movements and this gives medium risk. Low RSI14 is 11 which reduces the risk some. There is a sell signal from a pivot top found 14 days ago.)

Trading Expectations (0655.HK) For The Upcoming Trading Day Of Friday 21st

For the upcoming trading day on Friday, 21st we expect Hongkong Chinese Limited to open at HK$0.293, and during the day (based on 14 day Average True Range), to move between HK$0.280 and HK$0.300, which gives a possible trading interval of +/-HK$0.0095 (+/-3.28%) up or down from last closing price. If Hongkong Chinese Limited takes out the full calculated possible swing range there will be an estimated 6.56% 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$0.295 (1.72%) than the support at HK$0.280 (3.45%), 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 Hongkong Chinese Limited stock A Buy?

Hongkong Chinese 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.

Current score: -0.329 Hold/Accumulate Unchanged

Predicted Opening Price for Hongkong Chinese Limited of Friday, June 21, 2024

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