Dingdong (Cayman) Limited Stock Forecast

Green day on Friday for Dingdong (Cayman) Limited
(Updated on May 03, 2024)

DDL Signals & Forecast

Mostly positive signals in the chart today. The Dingdong (Cayman) 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 $1.37 and $1.25. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, April 18, 2024, and so far it has risen 39.81%. 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). Dingdong (Cayman) Limited has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.

Support, Risk & Stop-loss for Dingdong (Cayman) Limited stock

On the downside, the stock finds support just below today's level from accumulated volume at $1.25 and $1.22. 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, Dingdong (Cayman) Limited finds support just below today's level at $1.25. If this is broken, then the next support from accumulated volume will be at $1.22 and $1.15.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $0.110 between high and low, or 7.44%. For the last week, the stock has had daily average volatility of 5.97%.

The Dingdong (Cayman) Limited stock is extremely overbought on RSI14 (85). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken. Since the Dingdong (Cayman) Limited has been rising for 7 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: $1.46 (-3.30%) (This stock has high daily movements and this gives high risk. The RSI14 is 85 and this increases the risk substantially. There is a buy signal from a pivot bottom found 11 days ago.)

Trading Expectations (DDL) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect Dingdong (Cayman) Limited to open at $1.53, and during the day (based on 14 day Average True Range), to move between $1.42 and $1.60, which gives a possible trading interval of +/-$0.0938 (+/-6.21%) up or down from last closing price. If Dingdong (Cayman) Limited takes out the full calculated possible swing range there will be an estimated 12.42% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $1.25, some $0.260 (17.22%) from the current price of $1.51, our system finds the risk reward attractive.

Is Dingdong (Cayman) Limited stock A Buy?

Several short-term signals are positive and the stock has broken the horizontal trend up, which indicates an even stronger rate of rising. We conclude that the current level may hold a buying opportunity as there is a fair chance for Dingdong (Cayman) Limited stock to perform well in the short-term period.

Current score: 4.955 Buy Candidate Unchanged

Predicted Opening Price for Dingdong (Cayman) Limited of Monday, May 6, 2024

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