Caledonia Investments PLC Stock Forecast

Caledonia Investments PLC stock downgraded to Hold/Accumulate
(Updated on May 02, 2024)

CLDN.L Signals & Forecast

There are mixed signals in the stock today. A sell signal was issued from a pivot top point on Tuesday, April 30, 2024, and so far it has fallen -0.140%. 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). The Caledonia Investments PLC 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 £3,548.57 and £3,380.29. A breakdown below any of these levels will issue sell signals. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

Support, Risk & Stop-loss for Caledonia Investments PLC stock

Caledonia Investments PLC finds support from accumulated volume at £3,550.00 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved £54.36 (1.55%) between high and low. For the last week, the stock has had daily average volatility of 1.50%.

The Caledonia Investments PLC stock is overbought on RSI14 and the RSI has been falling for the last couple of days. This together with the fact that the stock is in the upper part of the trend poses a possible good selling opportunity for the short-term trader. However, one should note that 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: £3,449.40 (-2.97%) (This stock has low daily movements and this gives low risk. The RSI14 is 79 and this increases the risk substantially. There is a sell signal from a pivot top found 2 days ago.)

Trading Expectations (CLDN.L) For The Upcoming Trading Day Of Friday 3rd

For the upcoming trading day on Friday, 3rd we expect Caledonia Investments PLC to open at £3,536.88, and during the day (based on 14 day Average True Range), to move between £3,503.21 and £3,606.79, which gives a possible trading interval of +/-£51.79 (+/-1.46%) up or down from last closing price. If Caledonia Investments PLC takes out the full calculated possible swing range there will be an estimated 2.91% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at £3,560.00 (0.14%) than the support at £3,550.00 (0.14%), 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 Caledonia Investments PLC stock A Buy?

Caledonia Investments PLC 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 Buy to a Hold/Accumulate candidate.

Current score: 0.985 Hold/Accumulate Downgraded

Predicted Opening Price for Caledonia Investments PLC of Friday, May 3, 2024

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