Qingling Motors Co., Ltd. Stock Forecast

Green day on Friday for Qingling Motors Co., Ltd.
(Updated on May 10, 2024)

1122.HK Signals & Forecast

The Qingling Motors Co., Ltd. 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$0.574 and HK$0.548. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, April 18, 2024, and so far it has risen 19.23%. 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 Qingling Motors Co., Ltd. stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$0.560 and HK$0.540. 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, Qingling Motors Co., Ltd. finds support just below today's level at HK$0.560. If this is broken, then the next support from accumulated volume will be at HK$0.540 and HK$0.530.

This stock has average movements during the day, but be aware of low or falling volume as this increases the risk. During the last day, the stock moved HK$0.0200 between high and low, or 3.33%. For the last week the stock has had daily average volatility of 3.14%.

The Qingling Motors Co., Ltd. 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$0.603 (-2.74%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 92 and this increases the risk substantially. There is a buy signal from a pivot bottom found 15 days ago.)

Trading Expectations (1122.HK) For The Upcoming Trading Day Of Monday 13th

For the upcoming trading day on Monday, 13th we expect Qingling Motors Co., Ltd. to open at HK$0.613, and during the day (based on 14 day Average True Range), to move between HK$0.600 and HK$0.640, which gives a possible trading interval of +/-HK$0.0196 (+/-3.17%) up or down from last closing price. If Qingling Motors Co., Ltd. takes out the full calculated possible swing range there will be an estimated 6.33% 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$0.630 (1.61%) than the support at HK$0.560 (9.68%), 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 Qingling Motors Co., Ltd. stock A Buy?

Qingling Motors Co., Ltd. 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: 0.000 Hold/Accumulate Unchanged

Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.

Predicted Opening Price for Qingling Motors Co., Ltd. of Monday, May 13, 2024

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