Wenzhou Hongfeng Electrical Alloy Co., Stock Forecast

High volatility in Wenzhou Hongfeng Electrical Alloy Co., stock price on Wednesday which ended trading at ¥5.80
(Updated on Jul 03, 2024)

300283.SZ Signals & Forecast

Mostly positive signals in the chart today. The Wenzhou Hongfeng Electrical Alloy Co., 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 ¥5.53 and ¥4.90. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, July 01, 2024, and so far it has risen 7.01%. 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). Volume is rising along with the price. This is considered to be a good technical signal.

Support, Risk & Stop-loss for Wenzhou Hongfeng Electrical Alloy Co., stock

Wenzhou Hongfeng Electrical Alloy Co., finds support from accumulated volume at ¥5.63 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved ¥0.780 between high and low, or 14.55%. For the last week, the stock has had daily average volatility of 26.08%.

The Wenzhou Hongfeng Electrical Alloy Co., 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 and the RSI is still moving upwards. 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: ¥5.59 (-3.58%) (This stock has high daily movements and this gives high risk. The RSI14 is 71 and this increases the risk substantially. There is a buy signal from a pivot bottom found 3 days ago.)

Trading Expectations (300283.SZ) For The Upcoming Trading Day Of Friday 5th

For the upcoming trading day on Friday, 5th we expect Wenzhou Hongfeng Electrical Alloy Co., Ltd. to open at ¥5.77, and during the day (based on 14 day Average True Range), to move between ¥5.17 and ¥6.43, which gives a possible trading interval of +/-¥0.626 (+/-10.79%) up or down from last closing price. If Wenzhou Hongfeng Electrical Alloy Co., Ltd. takes out the full calculated possible swing range there will be an estimated 21.58% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at ¥5.63 (2.93%) than the resistance at ¥5.99 (3.28%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Wenzhou Hongfeng Electrical Alloy Co., Ltd. stock A Buy?

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Wenzhou Hongfeng Electrical Alloy Co., stock to perform well in the short-term period.

Current score: 4.230 Buy Candidate Unchanged

Predicted Opening Price for Wenzhou Hongfeng Electrical Alloy Co., Ltd. of Friday, July 5, 2024

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