Hua Medicine (Shanghai) Ltd. 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
A very strong day for Hua Medicine (Shanghai) Ltd. stock price on Friday
(Updated on Jun 14, 2024)
The Hua Medicine (Shanghai) Ltd. stock price gained 5.33% on the last trading day (Friday, 14th Jun 2024), rising from HK$1.50 to HK$1.58. During the last trading day the stock fluctuated 7.48% from a day low at HK$1.47 to a day high of HK$1.58. The price has risen in 7 of the last 10 days and is up by 6.76% over the past 2 weeks. Volume fell on the last day by -64 thousand shares and in total, 1 million shares were bought and sold for approximately HK$1.73 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 is moving within a very wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Hua Medicine (Shanghai) Ltd. stock with a 90% probability to be traded between HK$1.30 and HK$1.66 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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2552.HK Signals & Forecast
The Hua Medicine (Shanghai) Ltd. 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$1.51 and HK$1.55. 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 11, 2024, and so far it has fallen -4.82%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Hua Medicine (Shanghai) Ltd. stock
Hua Medicine (Shanghai) Ltd. finds support from accumulated volume at HK$1.56 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
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$0.110 between high and low, or 7.48%. For the last week, the stock has had daily average volatility of 4.96%.
Our recommended stop-loss: HK$1.49 (-5.46%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 47 days ago.)
Trading Expectations (2552.HK) For The Upcoming Trading Day Of Monday 17th
For the upcoming trading day on Monday, 17th we expect Hua Medicine (Shanghai) Ltd. to open at HK$1.54, and during the day (based on 14 day Average True Range), to move between HK$1.50 and HK$1.66, which gives a possible trading interval of +/-HK$0.0761 (+/-4.82%) up or down from last closing price. If Hua Medicine (Shanghai) Ltd. takes out the full calculated possible swing range there will be an estimated 9.63% 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$1.59 (0.63%) than the support at HK$1.56 (1.27%), 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 Hua Medicine (Shanghai) Ltd. stock A Buy?
Hua Medicine (Shanghai) 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. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.
Current score: -0.212 Hold/Accumulate Upgraded
Predicted Opening Price for Hua Medicine (Shanghai) Ltd. of Monday, June 17, 2024
| Fair opening price June 17, 2024 | Current price |
|---|---|
| HK$1.54 ( 2.32%) | HK$1.58 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 2552.HK
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 1.65 | 4.64% |
| R2 | 1.61 | 1.98% |
| R1 | 1.59 | 0.339% |
| Price | 1.58 | |
| S1 | 1.50 | -4.98% |
| S2 | 1.48 | -6.62% |
| S3 | 1.43 | -9.28% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 1.66 | 5.06% |
| R2 | 1.62 | 2.53% |
| R1 | 1.59 | 0.633% |
| Price | 1.58 | |
| S1 | 1.56 | -1.27% |
| S2 | 1.51 | -4.43% |
| S3 | 1.45 | -8.23% |
FAQ
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