Chuan Holdings Limited Stock Forecast

Chuan Holdings Limited stock upgraded from Sell Candidate to Hold/Accumulate after Thursday trading session.
(Updated on Jun 20, 2024)

1420.HK Signals & Forecast

Volume gained on the last day while the price remained unchanged. This is not a classical divergence, but the stock should be watched more closely at it may be a "turning point". The very low volume increases the risk and reduces the other technical signals issued. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Chuan Holdings Limited stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at HK$0.0710 and HK$0.0682. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Friday, May 17, 2024, and so far it has fallen -16.25%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

Support, Risk & Stop-loss for Chuan Holdings Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$0.0530 and HK$0.0520. 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, Chuan Holdings Limited finds support just below today's level at HK$0.0530. If this is broken, then the next support from accumulated volume will be at HK$0.0520 and HK$0.0510.

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 between high and low, or 0%. For the last week, the stock has had daily average volatility of 1.19%.

Our recommended stop-loss: HK$0.0627 (-6.46%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 60 days ago.)

Trading Expectations (1420.HK) For The Upcoming Trading Day Of Friday 21st

For the upcoming trading day on Friday, 21st we expect Chuan Holdings Limited to open at HK$0.0670, and during the day (based on 14 day Average True Range), to move between HK$0.0640 and HK$0.0700, which gives a possible trading interval of +/-HK$0.0030 (+/-4.49%) up or down from last closing price. If Chuan Holdings Limited takes out the full calculated possible swing range there will be an estimated 8.98% 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$0.0690 (2.99%) than the support at HK$0.0530 (20.90%), 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 Chuan Holdings Limited stock A Buy?

Chuan Holdings Limited holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.

Current score: 0.000 Hold/Accumulate Upgraded

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 Chuan Holdings Limited of Friday, June 21, 2024

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