Casablanca Group Limited Stock Forecast

Strong day for Casablanca Group Limited stock price on Friday rising 18.31% to HK$0.420
(Updated on Jun 28, 2024)

2223.HK Signals & Forecast

The Casablanca Group 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$0.365 and HK$0.362. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, May 17, 2024, and so far it has risen 21.74%. 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 not be. The very low volume increases the risk and reduces the other technical signals issued.

Support, Risk & Stop-loss for Casablanca Group Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$0.365 and HK$0.355. 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, Casablanca Group Limited finds support just below today's level at HK$0.365. If this is broken, then the next support from accumulated volume will be at HK$0.355 and HK$0.350.

In general the stock tends to have very controlled movements and therefore the general risk is considered very low. However, be aware of low or falling volume and make sure to keep an eye on the stock During the last day, the stock moved HK$0.0050 between high and low, or 1.19%. For the last week the stock has had daily average volatility of 0.81%

The Casablanca Group 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$0.404 (-3.77%) (This stock has low daily movements and this gives low risk. The RSI14 is 93 and this increases the risk substantially. There is a buy signal from a pivot bottom found 22 days ago.)

Trading Expectations (2223.HK) For The Upcoming Trading Day Of Tuesday 2nd

For the upcoming trading day on Tuesday, 2nd we expect Casablanca Group Limited to open at HK$0.422, and during the day (based on 14 day Average True Range), to move between HK$0.410 and HK$0.430, which gives a possible trading interval of +/-HK$0.0097 (+/-2.32%) up or down from last closing price. If Casablanca Group Limited takes out the full calculated possible swing range there will be an estimated 4.64% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ HK$0.365, some HK$0.0550 (13.10%) from the current price of HK$0.420, our system finds the risk reward attractive.

Is Casablanca Group Limited stock A Buy?

Casablanca Group 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. 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 Casablanca Group Limited of Tuesday, July 2, 2024

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