Zhicheng Technology Group Ltd. Stock Forecast
Zhicheng Technology Group Ltd. stock downgraded to Sell Candidate
(Updated on Jul 02, 2024)
The Zhicheng Technology Group Ltd. stock price gained 3.70% on the last trading day (Tuesday, 2nd Jul 2024), rising from HK$0.0270 to HK$0.0280. During the last trading day the stock fluctuated 3.70% from a day low at HK$0.0270 to a day high of HK$0.0280. The price has been going up and down for this period, and there has been a -12.5% loss for the last 2 weeks. Volume fell on the last day by -240 thousand shares and in total, 680 thousand shares were bought and sold for approximately HK$19.04 thousand. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -8.00% during the next 3 months and, with a 90% probability hold a price between HK$0.0234 and HK$0.0304 at the end of this 3-month period.
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8511.HK Signals & Forecast
A buy signal was issued from a pivot bottom point on Friday, June 28, 2024, and so far it has risen 3.70%. 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). Some negative signals were issued as well, and these may have some influence on the near short-term development. The Zhicheng Technology Group Ltd. stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at HK$0.0290 and HK$0.0299. A break-up above any of these levels will issue buy signals. 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.
A buy signal from a double bottom formation was found on Friday, June 28, 2024 and based on theory for this formation the price should go up by 36.43% to HK$0.0382 within 15 trading days since signal was issued (Monday, July 22, 2024).
Support, Risk & Stop-loss for Zhicheng Technology Group Ltd. stock
Zhicheng Technology Group Ltd. finds support from accumulated volume at HK$0.0270 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 periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved HK$0.0010 between high and low, or 3.70%. For the last week the stock has had daily average volatility of 3.94%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (8511.HK) For The Upcoming Trading Day Of Wednesday 3rd
For the upcoming trading day on Wednesday, 3rd we expect Zhicheng Technology Group Ltd. to open at HK$0.0277, and during the day (based on 14 day Average True Range), to move between HK$0.0264 and HK$0.0296, which gives a possible trading interval of +/-HK$0.0016 (+/-5.77%) up or down from last closing price. If Zhicheng Technology Group Ltd. takes out the full calculated possible swing range there will be an estimated 11.55% 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$0.0290 (3.57%) than the support at HK$0.0270 (3.57%), 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 Zhicheng Technology Group Ltd. stock A Buy?
Zhicheng Technology Group Ltd. holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.
Current score: -2.171 Sell Candidate Downgraded
Predicted Opening Price for Zhicheng Technology Group Ltd. of Wednesday, July 3, 2024
| Fair opening price July 3, 2024 | Current price |
|---|---|
| HK$0.0277 ( 1.19%) | HK$0.0280 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 8511.HK
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 0.0287 | 2.38% |
| R2 | 0.0283 | 1.02% |
| R1 | 0.0280 | 0.174% |
| Price | 0.0280 | |
| S1 | 0.0273 | -2.55% |
| S2 | 0.0270 | -3.40% |
| S3 | 0.0267 | -4.76% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 0.0330 | 17.86% |
| R2 | 0.0310 | 10.71% |
| R1 | 0.0290 | 3.57% |
| Price | 0.0280 | |
| S1 | 0.0270 | -3.57% |
| S2 | 0 | - |
| S3 | 0 | - |
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