Lee & Man Chemical Company Limited Stock Forecast

Red day on Friday for Lee & Man Chemical Company Limited stock after losing 0%
(Updated on May 24, 2024)

0746.HK Signals & Forecast

The Lee & Man Chemical Company Limited stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately HK$3.98. On a fall, the stock will find some support from the long-term average at approximately HK$3.48. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. 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 20, 2024, and so far it has fallen -5.80%. Further fall is indicated until a new bottom pivot has been found. Volume fell on the last day without any changes to the price. This does not cause any direct divergence but may be an early warning and a possible "turning point".

Support, Risk & Stop-loss for Lee & Man Chemical Company Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$3.27 and HK$3.14. 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, Lee & Man Chemical Company Limited finds support just below today's level at HK$3.27. If this is broken, then the next support from accumulated volume will be at HK$3.14 and HK$3.10.

This stock may move much during the day (volatility) and with periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved HK$0.0600 between high and low, or 1.56%. For the last week the stock has had daily average volatility of 3.84%.

Our recommended stop-loss: HK$3.69 (-5.34%) (This stock has high daily movements and this gives high risk. There is a sell signal from a pivot top found 35 days ago.)

Trading Expectations (0746.HK) For The Upcoming Trading Day Of Monday 27th

For the upcoming trading day on Monday, 27th we expect Lee & Man Chemical Company Limited to open at HK$3.88, and during the day (based on 14 day Average True Range), to move between HK$3.78 and HK$4.02, which gives a possible trading interval of +/-HK$0.119 (+/-3.05%) up or down from last closing price. If Lee & Man Chemical Company Limited takes out the full calculated possible swing range there will be an estimated 6.11% 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$3.91 (0.26%) than the support at HK$3.27 (16.15%), 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 Lee & Man Chemical Company Limited stock A Buy?

Lee & Man Chemical 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.

Current score: -0.264 Hold/Accumulate Unchanged

Predicted Opening Price for Lee & Man Chemical Company Limited of Monday, May 27, 2024

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