Midea Real Estate Holding Limited Stock Forecast

Strong day for Midea Real Estate Holding Limited stock price on Friday rising 5.13% to HK$4.71
(Updated on May 03, 2024)

3990.HK Signals & Forecast

Mostly positive signals in the chart today. The Midea Real Estate Holding 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$4.16 and HK$3.93. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 05, 2024, and so far it has risen 32.68%. 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 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.

Support, Risk & Stop-loss for Midea Real Estate Holding Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$4.38 and HK$4.26. 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, Midea Real Estate Holding Limited finds support just below today's level at HK$4.38. If this is broken, then the next support from accumulated volume will be at HK$4.26 and HK$4.08.

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 HK$0.300 between high and low, or 6.68%. For the last week, the stock has had daily average volatility of 7.95%.

The Midea Real Estate Holding Limited stock is extremely overbought on RSI14 (89). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken. Since the Midea Real Estate Holding Limited has been rising for 7 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: HK$4.52 (-4.07%) (This stock has high daily movements and this gives high risk. The RSI14 is 89 and this increases the risk substantially. There is a buy signal from a pivot bottom found 19 days ago.)

Trading Expectations (3990.HK) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect Midea Real Estate Holding Limited to open at HK$4.66, and during the day (based on 14 day Average True Range), to move between HK$4.49 and HK$4.93, which gives a possible trading interval of +/-HK$0.219 (+/-4.65%) up or down from last closing price. If Midea Real Estate Holding Limited takes out the full calculated possible swing range there will be an estimated 9.29% 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$4.75 (0.85%) than the support at HK$4.38 (7.01%), 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 Midea Real Estate Holding Limited stock A Buy?

Several short-term signals are positive and the break-up from the falling trend indicates a possible shift for a trend. We believe that the prices around the breaking point will indicate particularly good levels, but we also believe that the current level will hold a possible good buy level for the short-term period.

Current score: 3.413 Buy Candidate Unchanged

Predicted Opening Price for Midea Real Estate Holding Limited of Monday, May 6, 2024

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