Deswell Industries Stock Forecast
Deswell Industries stock downgraded from Buy Candidate to Sell Candidate after Tuesday trading session.
(Updated on Apr 23, 2024)
The Deswell Industries stock price fell by -1.72% on the last day (Tuesday, 23rd Apr 2024) from $2.30 to $2.26. During the last trading day the stock fluctuated 2.22% from a day low at $2.25 to a day high of $2.30. The price has risen in 5 of the last 10 days and is up by 0.46% over the past 2 weeks. Volume has increased on the last day by 7 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 9 thousand shares were bought and sold for approximately $20.35 thousand.
The stock lies in the middle of a wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -5.66% during the next 3 months and, with a 90% probability hold a price between $1.97 and $2.25 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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DSWL Signals & Forecast
The Deswell Industries stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately $2.28. On a fall, the stock will find some support from the long-term average at approximately $2.24. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. A buy signal was issued from a pivot bottom point on Thursday, March 07, 2024, and so far it has risen 4.41%. 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). Some negative signals were issued as well, and these may have some influence on the near short-term development. Deswell Industries gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for Deswell Industries stock
Deswell Industries finds support from accumulated volume at $2.24 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 with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $0.0500 between high and low, or 2.22%. For the last week the stock has had daily average volatility of 0.548%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (DSWL) For The Upcoming Trading Day Of Wednesday 24th
For the upcoming trading day on Wednesday, 24th we expect Deswell Industries to open at $2.27, and during the day (based on 14 day Average True Range), to move between $2.21 and $2.31, which gives a possible trading interval of +/-$0.0464 (+/-2.05%) up or down from last closing price. If Deswell Industries takes out the full calculated possible swing range there will be an estimated 4.11% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $2.27 (0.42%) than the support at $2.24 (0.90%), 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 Deswell Industries stock A Buy?
Deswell Industries holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, 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 Buy to a Sell candidate.
Current score: -1.423 Sell Candidate Downgraded
Predicted Opening Price for Deswell Industries of Wednesday, April 24, 2024
| Fair opening price April 24, 2024 | Current price |
|---|---|
| $2.27 ( 0.431%) | $2.26 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for DSWL
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 2.32 | 2.64 % | |
| R2 | 2.30 | 1.80 % | ||
| R1 | 2.29 | 1.28 % | ||
| Current price: | 2.26 | |||
| Support | S1 | 2.25 | -0.414 % | |
| S2 | 2.24 | -0.94 % | ||
| S3 | 2.22 | -1.78 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 2.37 | 4.85 % | |
| R2 | 2.33 | 3.08 % | ||
| R1 | 2.27 | 0.425 % | ||
| Current price | 2.26 | |||
| Support | S1 | 2.24 | -0.90% | |
| S2 | 2.24 | -1.12% | ||
| S3 | 2.22 | -1.79% |
DSWL Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Nov 17, 2023 | Nov 30, 2023 | Dec 21, 2023 | $0.100 | 3.94% |
| 2 | Jun 20, 2023 | Jul 03, 2023 | Jul 20, 2023 | $0.100 | 3.88% |
| 3 | Nov 17, 2022 | Nov 30, 2022 | Dec 22, 2022 | $0.100 | 3.10% |
| 4 | Jun 16, 2022 | Jun 29, 2022 | Jul 15, 2022 | $0.100 | 3.26% |
| 5 | Nov 22, 2021 | Dec 03, 2021 | Dec 22, 2021 | $0.100 | 2.56% |
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