Direcional Engenharia S.A. Stock Forecast

Direcional Engenharia S.A. stock downgraded to Sell Candidate
(Updated on May 01, 2024)

DIRR3.SA Signals & Forecast

A buy signal was issued from a pivot bottom point on Tuesday, April 30, 2024, and so far it has fallen 0%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Direcional Engenharia S.A. stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at R$23.41 and R$24.20. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell on the last day without any changes to the price. This does not cause any direct divergence but may be an early warning and a possible "turning point". The very low volume increases the risk and reduces the other technical signals issued.

Support, Risk & Stop-loss for Direcional Engenharia S.A. stock

Direcional Engenharia S.A. finds support from accumulated volume at R$23.31 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 very controlled movements and therefore the general risk is considered very 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 R$0 between high and low, or 0%. For the last week the stock has had daily average volatility of 3.55%

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (DIRR3.SA) For The Upcoming Trading Day Of Thursday 2nd

For the upcoming trading day on Thursday, 2nd we expect Direcional Engenharia S.A. to open at R$23.32, and during the day (based on 14 day Average True Range), to move between R$22.58 and R$24.06, which gives a possible trading interval of +/-R$0.745 (+/-3.19%) up or down from last closing price. If Direcional Engenharia S.A. takes out the full calculated possible swing range there will be an estimated 6.39% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at R$23.31 (0.04%) than the resistance at R$23.40 (0.34%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Direcional Engenharia S.A. stock A Buy?

The Direcional Engenharia S.A. stock holds several negative signals and despite the positive trend, we believe Direcional Engenharia S.A. will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.

Current score: -1.248 Sell Candidate Downgraded

Predicted Opening Price for Direcional Engenharia S.A. of Thursday, May 2, 2024

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