Eltel AB (publ) Stock Forecast

Eltel AB (publ) stock downgraded from Buy Candidate to Hold/Accumulate after Thursday trading session.
(Updated on Jun 20, 2024)

ELTEL.ST Signals & Forecast

The Eltel AB (publ) 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 kr7.61 and kr6.91. 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 Wednesday, June 19, 2024, and so far it has fallen -2.80%. 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 stock had a Golden Star Signal on Monday, April 08, 2024 for the short-term and also have Golden Star Signal for the medium-term dated Wednesday, March 27, 2024.

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 Eltel AB (publ) stock

On the downside, the stock finds support just below today's level from accumulated volume at kr6.88 and kr6.78. 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, Eltel AB (publ) finds support just below today's level at kr6.88. If this is broken, then the next support from accumulated volume will be at kr6.78 and kr6.60.

This stock has average movements during the day, but be aware of low or falling volume as this increases the risk. During the last day, the stock moved kr0.300 between high and low, or 3.95%. For the last week the stock has had daily average volatility of 4.38%.

The Eltel AB (publ) stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but 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: kr7.32 (-4.22%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 78 and this increases the risk substantially. There is a sell signal from a pivot top found 34 days ago.)

Trading Expectations (ELTEL.ST) For The Upcoming Trading Day Of Monday 24th

For the upcoming trading day on Monday, 24th we expect Eltel AB (publ) to open at kr7.71, and during the day (based on 14 day Average True Range), to move between kr7.36 and kr7.92, which gives a possible trading interval of +/-kr0.282 (+/-3.69%) up or down from last closing price. If Eltel AB (publ) takes out the full calculated possible swing range there will be an estimated 7.37% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at kr7.70 (0.79%) than the support at kr6.88 (9.95%), 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 Eltel AB (publ) stock A Buy?

Eltel AB (publ) 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: 0.768 Hold/Accumulate Downgraded

Predicted Opening Price for Eltel AB (publ) of Monday, June 24, 2024

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