Optima Automobile Group Holdings Ltd Stock Forecast

Optima Automobile Group Holdings Ltd stock upgraded to Buy Candidate.
(Updated on May 31, 2024)

8418.HK Signals & Forecast

There are mixed signals in the stock today. A sell signal was issued from a pivot top point on Friday, May 24, 2024, and so far it has fallen -2.38%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may not be. The very low volume increases the risk and reduces the other technical signals issued. The Optima Automobile Group Holdings Ltd 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$0.81 and HK$0.760. A breakdown below any of these levels will issue sell signals.

Support, Risk & Stop-loss for Optima Automobile Group Holdings Ltd stock

On the downside, the stock finds support just below today's level from accumulated volume at HK$0.690 and HK$0.680. 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, Optima Automobile Group Holdings Ltd finds support just below today's level at HK$0.690. If this is broken, then the next support from accumulated volume will be at HK$0.680 and HK$0.620.

This stock has average movements during the day, but be aware of low or falling volume as this increases the risk. During the last day, the stock moved HK$0.0300 between high and low, or 3.80%. For the last week the stock has had daily average volatility of 7.00%.

Our recommended stop-loss: HK$0.791 (-3.51%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 21 days ago.)

Trading Expectations (8418.HK) For The Upcoming Trading Day Of Monday 3rd

For the upcoming trading day on Monday, 3rd we expect Optima Automobile Group Holdings Ltd to open at HK$0.81, and during the day (based on 14 day Average True Range), to move between HK$0.758 and HK$0.88, which gives a possible trading interval of +/-HK$0.0624 (+/-7.61%) up or down from last closing price. If Optima Automobile Group Holdings Ltd takes out the full calculated possible swing range there will be an estimated 15.22% 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$0.83 (1.22%) than the support at HK$0.690 (15.85%), 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 Optima Automobile Group Holdings Ltd stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Optima Automobile Group Holdings Ltd stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.

Current score: 1.777 Buy Candidate Upgraded

Predicted Opening Price for Optima Automobile Group Holdings Ltd of Monday, June 3, 2024

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