Digital China 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
Digital China Holdings Limited stock price up 1.89% on Friday
(Updated on May 17, 2024)
The Digital China Holdings Limited stock price gained 1.89% on the last trading day (Friday, 17th May 2024), rising from HK$3.17 to HK$3.23. It has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 2.21% from a day low at HK$3.17 to a day high of HK$3.24. The price has risen in 6 of the last 10 days and is up by 1.89% over the past 2 weeks. Volume fell on the last day by -4 million shares and in total, 6 million shares were bought and sold for approximately HK$19.40 million. 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 middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 22.07% during the next 3 months and, with a 90% probability hold a price between HK$3.63 and HK$4.34 at the end of this 3-month period.
Ready to grow your portfolio? Here's your beginner's guide to opening a free brokerage account.
0861.HK Signals & Forecast
The Digital China Holdings Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at HK$3.07 and HK$3.12. 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). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. 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 Thursday, April 18, 2024, and so far it has fallen -3.58%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Digital China Holdings Limited stock
On the downside, the stock finds support just below today's level from accumulated volume at HK$2.98 and HK$2.87. 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, Digital China Holdings Limited finds support just below today's level at HK$2.98. If this is broken, then the next support from accumulated volume will be at HK$2.87 and HK$2.83.
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$0.0700 between high and low, or 2.21%. For the last week, the stock has had daily average volatility of 2.56%.
Since the Digital China Holdings Limited has been rising for 6 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stop-loss: HK$3.11 (-3.65%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 19 days ago.)
Trading Expectations (0861.HK) For The Upcoming Trading Day Of Monday 20th
For the upcoming trading day on Monday, 20th we expect Digital China Holdings Limited to open at HK$3.21, and during the day (based on 14 day Average True Range), to move between HK$3.12 and HK$3.34, which gives a possible trading interval of +/-HK$0.108 (+/-3.33%) up or down from last closing price. If Digital China Holdings Limited takes out the full calculated possible swing range there will be an estimated 6.66% 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$3.25 (0.62%) than the support at HK$2.98 (7.74%), 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 Digital China 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 Digital China Holdings Limited stock to perform well in the short-term.
Current score: 3.404 Buy Candidate Unchanged
Predicted Opening Price for Digital China Holdings Limited of Monday, May 20, 2024
| Fair opening price May 20, 2024 | Current price |
|---|---|
| HK$3.21 ( 0.516%) | HK$3.23 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 0861.HK
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 3.28 | 1.65 % | |
| R2 | 3.26 | 0.82 % | ||
| R1 | 3.24 | 0.312 % | ||
| Current price: | 3.23 | |||
| Support | S1 | 3.19 | -1.34 % | |
| S2 | 3.17 | -1.86 % | ||
| S3 | 3.14 | -2.68 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 3.35 | 3.72 % | |
| R2 | 3.26 | 0.93 % | ||
| R1 | 3.25 | 0.619 % | ||
| Current price | 3.23 | |||
| Support | S1 | 2.98 | -7.74% | |
| S2 | 2.87 | -11.15% | ||
| S3 | 2.83 | -12.38% |
0861 Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Jul 02, 2024 | Jul 02, 2024 | Jul 16, 2024 | HK$0.0600 | 1.86% |
| 2 | Sep 14, 2023 | Sep 14, 2023 | Sep 14, 2023 | HK$0.0100 | 0.388% |
| 3 | Jun 30, 2023 | Jun 30, 2023 | Jun 30, 2023 | HK$0.0450 | 1.44% |
| 4 | Sep 15, 2022 | Sep 15, 2022 | Sep 15, 2022 | HK$0.0230 | 0.671% |
| 5 | Jul 07, 2022 | Jul 07, 2022 | Jul 07, 2022 | HK$0.130 | 3.54% |
FAQ
Click here for our free guide on how to buy Digital China Holdings Limited Stock.
