Central Fund of Canada Ltd Stock Forecast

Stronger technical forecast for Central Fund of Canada Ltd stock price after Monday trading.
(Updated on Apr 15, 2024)

CEF Signals & Forecast

Mostly positive signals in the chart today. The Central Fund of Canada 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 $22.04 and $20.29. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, February 13, 2024, and so far it has risen 23.84%. 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 is rising along with the price. This is considered to be a good technical signal. The stock had a Golden Star Signal on Thursday, February 29, 2024 for the short-term and also have Golden Star Signal for the medium-term dated Wednesday, February 28, 2024.

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 Central Fund of Canada Ltd stock

Central Fund of Canada Ltd finds support from accumulated volume at $22.00 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.480 between high and low, or 2.19%. For the last week, the stock has had daily average volatility of 2.75%.

The Central Fund of Canada Ltd stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: $21.64 (-3.36%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 82 and this increases the risk substantially. There is a buy signal from a pivot bottom found 42 days ago.)

Trading Expectations (CEF) For The Upcoming Trading Day Of Tuesday 16th

For the upcoming trading day on Tuesday, 16th we expect Central Fund of Canada Ltd to open at $22.23, and during the day (based on 14 day Average True Range), to move between $21.99 and $22.79, which gives a possible trading interval of +/-$0.397 (+/-1.77%) up or down from last closing price. If Central Fund of Canada Ltd takes out the full calculated possible swing range there will be an estimated 3.55% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $22.00, some $0.390 (1.74%) from the current price of $22.39, our system finds the risk reward attractive.

Is Central Fund of Canada Ltd stock A Buy?

Central Fund of Canada Ltd holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 6.391 Strong Buy Candidate Upgraded

Predicted Opening Price for Central Fund of Canada Ltd of Tuesday, April 16, 2024

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