Carpenter Tan Holdings Limited Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Stronger technical forecast for Carpenter Tan Holdings Limited stock price after Wednesday trading.
(Updated on Jul 03, 2024)
The Carpenter Tan Holdings Limited stock price gained 2.31% on the last trading day (Wednesday, 3rd Jul 2024), rising from HK$5.62 to HK$5.75. During the last trading day the stock fluctuated 4.63% from a day low at HK$5.62 to a day high of HK$5.88. The price has been going up and down for this period, and there has been a 2.5% gain for the last 2 weeks. Volume fell on the last day by -102 thousand shares and in total, 26 thousand shares were bought and sold for approximately HK$149.50 thousand. 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 upper part of a weak rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at HK$5.77 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 6.19% during the next 3 months and, with a 90% probability hold a price between HK$5.77 and HK$6.13 at the end of this 3-month period.
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0837.HK Signals & Forecast
The Carpenter Tan Holdings 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$5.66 and HK$5.52. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, May 29, 2024, and so far it has risen 8.49%. 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). Some negative signals were issued as well, and these may have some influence on the near short-term development. 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.
Support, Risk & Stop-loss for Carpenter Tan Holdings Limited stock
Carpenter Tan Holdings Limited finds support from accumulated volume at HK$5.62 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$0.260 between high and low, or 4.63%. For the last week the stock has had daily average volatility of 3.39%
The Carpenter Tan Holdings Limited stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stop-loss: HK$5.51 (-4.20%) (This stock has low daily movements and this gives low risk. The RSI14 is 81 and this increases the risk substantially. There is a buy signal from a pivot bottom found 24 days ago.)
Trading Expectations (0837.HK) For The Upcoming Trading Day Of Thursday 4th
For the upcoming trading day on Thursday, 4th we expect Carpenter Tan Holdings Limited to open at HK$5.75, and during the day (based on 14 day Average True Range), to move between HK$5.63 and HK$5.87, which gives a possible trading interval of +/-HK$0.119 (+/-2.07%) up or down from last closing price. If Carpenter Tan Holdings Limited takes out the full calculated possible swing range there will be an estimated 4.14% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ HK$5.62, some HK$0.130 (2.26%) from the current price of HK$5.75, our system finds the risk reward attractive.
Is Carpenter Tan Holdings Limited stock A Buy?
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Carpenter Tan Holdings Limited stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.
Current score: 3.842 Buy Candidate Upgraded
Predicted Opening Price for Carpenter Tan Holdings Limited of Thursday, July 4, 2024
| Fair opening price July 4, 2024 | Current price |
|---|---|
| HK$5.75 ( 0%) | HK$5.75 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 0837.HK
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 6.01 | 4.52% |
| R2 | 5.91 | 2.79% |
| R1 | 5.85 | 1.73% |
| Price | 5.75 | |
| S1 | 5.65 | -1.73% |
| S2 | 5.59 | -2.79% |
| S3 | 5.49 | -4.52% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 0 | - |
| R2 | 0 | - |
| R1 | 0 | - |
| Price | 5.75 | |
| S1 | 5.62 | -2.26% |
| S2 | 5.50 | -4.35% |
| S3 | 5.41 | -5.91% |
0837 Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | May 29, 2024 | May 29, 2024 | Jun 30, 2024 | HK$0.386 | 6.78% |
| 2 | May 30, 2023 | May 30, 2023 | May 30, 2023 | HK$0.250 | 6.99% |
| 3 | Sep 09, 2022 | Sep 09, 2022 | Sep 09, 2022 | HK$0.130 | 4.00% |
| 4 | May 25, 2022 | May 25, 2022 | May 25, 2022 | HK$0.272 | 8.73% |
| 5 | May 25, 2021 | May 25, 2021 | May 25, 2021 | HK$0.196 | 5.11% |
FAQ
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