Aruma Resources Limited Stock Forecast
Volatile ride for Aruma Resources Limited stock price on Tuesday moving between $0.0170 and $0.0210
(Updated on May 28, 2024)
The Aruma Resources Limited stock price fell by -13.64% on the last day (Tuesday, 28th May 2024) from $0.0220 to $0.0190. During the last trading day the stock fluctuated 23.53% from a day low at $0.0170 to a day high of $0.0210. The price has risen in 4 of the last 10 days and is up by 26.67% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -2 million shares and in total, 2 million shares were bought and sold for approximately $37.41 thousand.
The stock is moving within a very wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Aruma Resources Limited stock with a 90% probability to be traded between $0.0146 and $0.0216 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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AAJ.AX Signals & Forecast
The Aruma Resources 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 $0.0187 and $0.0172. 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). 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 Monday, May 27, 2024, and so far it has fallen -13.64%. Further fall is indicated until a new bottom pivot has been found. Volume fell along with the price during the last trading day which is technical positive. One should, however, note that this stock may have low liquidity in periods, which increases the general risk. The very low volume increases the risk and reduces the other technical signals issued.
A sell signal from a double top formation was found on Monday, May 27, 2024 and based on theory for this formation the price should fall by -57.89% to $0.0080 within 34 trading days since signal was issued (Wednesday, May 29, 2024).
Support, Risk & Stop-loss for Aruma Resources Limited stock
On the downside, the stock finds support just below today's level from accumulated volume at $0.0180 and $0.0170. 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, Aruma Resources Limited finds support just below today's level at $0.0180. If this is broken, then the next support from accumulated volume will be at $0.0170 and $0.0150.
This stock may move very much during the day (volatility) and with periodic low trading volume this stock is considered to be "very high risk". During the last day, the stock moved $0.0040 between high and low, or 23.53%. For the last week the stock has had daily average volatility of 17.41%.
Our recommended stop-loss: $0.0182 (-4.21%) (This stock has very high daily movements and this gives very high risk. There is a sell signal from a pivot top found 18 days ago.)
Trading Expectations (AAJ.AX) For The Upcoming Trading Day Of Wednesday 29th
For the upcoming trading day on Wednesday, 29th we expect Aruma Resources Limited to open at $0.0190, and during the day (based on 14 day Average True Range), to move between $0.0175 and $0.0205, which gives a possible trading interval of +/-$0.0015 (+/-8.15%) up or down from last closing price. If Aruma Resources Limited takes out the full calculated possible swing range there will be an estimated 16.30% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $0.0200 (5.26%) than the support at $0.0180 (5.26%), 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 Aruma Resources Limited stock A Buy?
Aruma Resources 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.
Current score: 0.638 Hold/Accumulate Unchanged
Predicted Opening Price for Aruma Resources Limited of Wednesday, May 29, 2024
| Fair opening price May 29, 2024 | Current price |
|---|---|
| $0.0190 ( 0.00000000%) | $0.0190 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for AAJ.AX
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.0230 | 21.05 % | |
| R2 | 0.0215 | 13.01 % | ||
| R1 | 0.0205 | 8.04 % | ||
| Current price: | 0.0190 | |||
| Support | S1 | 0.0175 | -8.04 % | |
| S2 | 0.0165 | -13.01 % | ||
| S3 | 0.0150 | -21.05 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.0220 | 15.79 % | |
| R2 | 0.0210 | 10.53 % | ||
| R1 | 0.0200 | 5.26 % | ||
| Current price | 0.0190 | |||
| Support | S1 | 0.0180 | -5.26% | |
| S2 | 0.0170 | -10.53% | ||
| S3 | 0.0150 | -21.05% |
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