Guan Chao Holdings Limited Stock Forecast

Red day on Thursday for Guan Chao Holdings Limited stock after losing 0%
(Updated on Jun 20, 2024)

1872.HK Signals & Forecast

The Guan Chao Holdings Limited stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately HK$0.644. On a fall, the stock will find some support from the long-term average at approximately HK$0.207. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. 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 Thursday, June 13, 2024, and so far it has fallen -11.43%. Further fall is indicated until a new bottom pivot has been found. Volume fell on the last day without any changes to the price. This does not cause any direct divergence but may be an early warning and a possible "turning point". The very low volume increases the risk and reduces the other technical signals issued.

Support, Risk & Stop-loss for Guan Chao Holdings Limited stock

There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.

This stock may move very much during the day (volatility) and with periodic low trading volume this stock is considered to be "very high 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 4.63%.

The Guan Chao 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$0.588 (-5.22%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 89 and this increases the risk substantially. There is a sell signal from a pivot top found 6 days ago.)

Trading Expectations (1872.HK) For The Upcoming Trading Day Of Friday 21st

For the upcoming trading day on Friday, 21st we expect Guan Chao Holdings Limited to open at HK$0.613, and during the day (based on 14 day Average True Range), to move between HK$0.579 and HK$0.661, which gives a possible trading interval of +/-HK$0.0410 (+/-6.61%) up or down from last closing price. If Guan Chao Holdings Limited takes out the full calculated possible swing range there will be an estimated 13.22% move between the lowest and the highest trading price during the day.

With no support below and resistance from accumulated volume @ HK$0.630, some HK$0.0100 (1.61%) from the current price of HK$0.620, our system finds the risk reward not very attractive.

Is Guan Chao Holdings Limited stock A Buy?

Guan Chao 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: 0.564 Hold/Accumulate Unchanged

Predicted Opening Price for Guan Chao Holdings Limited of Friday, June 21, 2024

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