China Literature Limited Stock Forecast
China Literature Limited stock downgraded to Sell Candidate
(Updated on Jul 02, 2024)
The China Literature Limited stock price fell by -2.19% on the last day (Tuesday, 2nd Jul 2024) from HK$25.15 to HK$24.60. During the last trading day the stock fluctuated 3.27% from a day low at HK$24.50 to a day high of HK$25.30. The price has fallen in 7 of the last 10 days and is down by -8.89% for this period. Volume has increased on the last day by 93 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 2 million shares were bought and sold for approximately HK$52.76 million.
The stock lies in the lower of a very wide and falling trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at HK$23.49 is broken, it will firstly indicate a stronger fall rate. Given the current short-term trend, the stock is expected to fall -3.23% during the next 3 months and, with a 90% probability hold a price between HK$22.74 and HK$30.48 at the end of this 3-month period.
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0772.HK Signals & Forecast
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. The China Literature 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$25.29 and HK$27.31. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, May 16, 2024, and so far it has fallen -23.24%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
Support, Risk & Stop-loss for China Literature Limited stock
China Literature Limited finds support from accumulated volume at HK$24.35 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 and with good trading volume, the risk is considered to be medium. During the last day, the stock moved HK$0.80 between high and low, or 3.27%. For the last week, the stock has had daily average volatility of 3.11%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (0772.HK) For The Upcoming Trading Day Of Wednesday 3rd
For the upcoming trading day on Wednesday, 3rd we expect China Literature Limited to open at HK$24.80, and during the day (based on 14 day Average True Range), to move between HK$23.56 and HK$25.64, which gives a possible trading interval of +/-HK$1.04 (+/-4.24%) up or down from last closing price. If China Literature Limited takes out the full calculated possible swing range there will be an estimated 8.49% 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$24.35 (1.02%) than the resistance at HK$26.30 (6.91%), 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 Literature Limited stock A Buy?
China Literature Limited holds several negative signals and is within a very wide and falling trend, so we believe 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 Hold/Accumulate to a Sell candidate.
Current score: -2.086 Sell Candidate Downgraded
Predicted Opening Price for China Literature Limited of Wednesday, July 3, 2024
| Fair opening price July 3, 2024 | Current price |
|---|---|
| HK$24.80 ( 0.81%) | HK$24.60 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 0772.HK
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 25.60 | 4.07% |
| R2 | 25.29 | 2.82% |
| R1 | 25.11 | 2.06% |
| Price | 24.60 | |
| S1 | 24.49 | -0.429% |
| S2 | 24.31 | -1.20% |
| S3 | 24.00 | -2.44% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 29.90 | 21.54% |
| R2 | 29.70 | 20.73% |
| R1 | 26.30 | 6.91% |
| Price | 24.60 | |
| S1 | 24.35 | -1.02% |
| S2 | 0 | - |
| S3 | 0 | - |
FAQ
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