Contact Energy Limited Stock Forecast

Evaluation of Contact Energy Limited stock downgraded after the last trading session.
(Updated on May 17, 2024)

CEN.AX Signals & Forecast

The Contact Energy 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 $8.11 and $7.79. 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 Thursday, May 16, 2024, and so far it has fallen -3.89%. 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. The stock had a Golden Star Signal on Friday, January 12, 2024 in the long-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 Contact Energy Limited stock

Contact Energy Limited finds support from accumulated volume at $7.80 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have controlled movements and therefore the general risk is considered low. However, be aware of low or falling volume and make sure to keep an eye on the stock. During the last day, the stock moved $0.150 between high and low, or 1.84%. For the last week the stock has had daily average volatility of 2.14%.

Our recommended stop-loss: $7.72 (-5.34%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 1 day ago.)

Trading Expectations (CEN.AX) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect Contact Energy Limited to open at $8.20, and during the day (based on 14 day Average True Range), to move between $7.94 and $8.38, which gives a possible trading interval of +/-$0.225 (+/-2.76%) up or down from last closing price. If Contact Energy Limited takes out the full calculated possible swing range there will be an estimated 5.51% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $8.49 (4.04%) than the support at $7.80 (4.41%), 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 Contact Energy Limited stock A Buy?

Contact Energy 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 Strong Buy to a Hold/Accumulate candidate.

Current score: 0.446 Hold/Accumulate Downgraded

Predicted Opening Price for Contact Energy Limited of Monday, May 20, 2024

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