Huishang Bank Corporation Limited Stock Forecast

Huishang Bank Corporation Limited stock downgraded from Buy Candidate to Hold/Accumulate after Friday trading session.
(Updated on May 17, 2024)

3698.HK Signals & Forecast

The Huishang Bank Corporation 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$2.39 and HK$2.37. 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 Friday, May 10, 2024, and so far it has fallen -0.415%. Further fall is indicated until a new bottom pivot has been found. The stock had a Golden Star Signal on Wednesday, April 10, 2024 for the short-term and also have Golden Star Signal for the medium-term dated Friday, April 12, 2024.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Support, Risk & Stop-loss for Huishang Bank Corporation Limited stock

Huishang Bank Corporation Limited finds support from accumulated volume at HK$2.38 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved HK$0.0300 between high and low, or 1.27%. For the last week the stock has had daily average volatility of 1.35%.

Our recommended stop-loss: HK$2.32 (-3.25%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 4 days ago.)

Trading Expectations (3698.HK) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect Huishang Bank Corporation Limited to open at HK$2.39, and during the day (based on 14 day Average True Range), to move between HK$2.38 and HK$2.42, which gives a possible trading interval of +/-HK$0.0222 (+/-0.92%) up or down from last closing price. If Huishang Bank Corporation Limited takes out the full calculated possible swing range there will be an estimated 1.85% 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$2.41 (0.42%) than the support at HK$2.38 (0.83%), 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 Huishang Bank Corporation Limited stock A Buy?

Huishang Bank Corporation 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. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.

Current score: 0.481 Hold/Accumulate Downgraded

Predicted Opening Price for Huishang Bank Corporation Limited of Monday, May 20, 2024

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