China Education Group Holdings Limited Stock Forecast

China Education Group Holdings Limited stock price down 1.90% on Monday
(Updated on May 13, 2024)

0839.HK Signals & Forecast

The China Education Group 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$4.95 and HK$4.31. A breakdown below any of these levels will issue sell signals. 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 Friday, May 10, 2024, and so far it has fallen -1.90%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Support, Risk & Stop-loss for China Education Group Holdings Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$4.75 and HK$4.48. 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, China Education Group Holdings Limited finds support just below today's level at HK$4.75. If this is broken, then the next support from accumulated volume will be at HK$4.48 and HK$4.45.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved HK$0.310 between high and low, or 6.22%. For the last week, the stock has had daily average volatility of 5.62%.

The China Education Group 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$4.96 (-3.92%) (This stock has high daily movements and this gives high risk. The RSI14 is 90 and this increases the risk substantially. There is a sell signal from a pivot top found 1 day ago.)

Trading Expectations (0839.HK) For The Upcoming Trading Day Of Tuesday 14th

For the upcoming trading day on Tuesday, 14th we expect China Education Group Holdings Limited to open at HK$5.14, and during the day (based on 14 day Average True Range), to move between HK$4.94 and HK$5.38, which gives a possible trading interval of +/-HK$0.225 (+/-4.36%) up or down from last closing price. If China Education Group Holdings Limited takes out the full calculated possible swing range there will be an estimated 8.71% 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$5.26 (1.94%) than the support at HK$4.75 (7.95%), 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 China Education Group Holdings Limited stock A Buy?

China Education Group Holdings 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: 0.602 Hold/Accumulate Unchanged

Predicted Opening Price for China Education Group Holdings Limited of Tuesday, May 14, 2024

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