Yunnan Water Investment Co., Limited Stock Forecast

A very red day for Yunnan Water Investment Co., Limited stock price after a -7.69% fall in the Friday trading session
(Updated on May 17, 2024)

6839.HK Signals & Forecast

The Yunnan Water Investment Co., Limited stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately HK$0.247. On a fall, the stock will find some support from the long-term average at approximately HK$0.219. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. 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. A sell signal was issued from a pivot top point on Tuesday, May 14, 2024, and so far it has fallen -9.43%. Further fall is indicated until a new bottom pivot has been found. Yunnan Water Investment Co., Limited gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The very low volume increases the risk and reduces the other technical signals issued. The stock had a Golden Star Signal on Friday, March 08, 2024 in the short-term chart.

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 Yunnan Water Investment Co., Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$0.227 and HK$0.223. 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, Yunnan Water Investment Co., Limited finds support just below today's level at HK$0.227. If this is broken, then the next support from accumulated volume will be at HK$0.223 and HK$0.193.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved HK$0 between high and low, or 0%. For the last week, the stock has had daily average volatility of 10.95%.

Our recommended stop-loss: HK$0.228 (-4.80%) (This stock has very high daily movements and this gives very high risk. There is a sell signal from a pivot top found 2 days ago.)

Trading Expectations (6839.HK) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect Yunnan Water Investment Co., Limited to open at HK$0.240, and during the day (based on 14 day Average True Range), to move between HK$0.215 and HK$0.265, which gives a possible trading interval of +/-HK$0.0247 (+/-10.30%) up or down from last closing price. If Yunnan Water Investment Co., Limited takes out the full calculated possible swing range there will be an estimated 20.60% 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$0.245 (2.08%) than the support at HK$0.227 (5.42%), 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 Yunnan Water Investment Co., Limited stock A Buy?

Yunnan Water Investment Co., 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: -0.744 Hold/Accumulate Downgraded

Predicted Opening Price for Yunnan Water Investment Co., Limited of Monday, May 20, 2024

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