Encounter Resources Limited Stock Forecast
Is Encounter Resources Limited stock still a buy after falling -5.41% on Tuesday?
(Updated on May 28, 2024)
The Encounter Resources Limited stock price fell by -5.41% on the last day (Tuesday, 28th May 2024) from $0.370 to $0.350. It has now fallen 4 days in a row. During the last trading day the stock fluctuated 8.57% from a day low at $0.350 to a day high of $0.380. The price has fallen in 6 of the last 10 days and is down by -5.41% for this period. Volume has increased on the last day by 261 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, 428 thousand shares were bought and sold for approximately $149.78 thousand.
The stock lies in the lower part of a very wide and strong rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $0.349 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 55.19% during the next 3 months and, with a 90% probability hold a price between $0.541 and $0.744 at the end of this 3-month period.
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ENR.AX Signals & Forecast
There are few to no technical positive signals at the moment. The Encounter Resources Limited stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $0.384 and $0.361. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Monday, April 29, 2024, and so far it has fallen -16.67%. 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). Encounter Resources Limited 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".
Support, Risk & Stop-loss for Encounter Resources Limited stock
Encounter Resources Limited finds support from accumulated volume at $0.335 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.0300 between high and low, or 8.57%. For the last week, the stock has had daily average volatility of 5.42%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (ENR.AX) For The Upcoming Trading Day Of Wednesday 29th
For the upcoming trading day on Wednesday, 29th we expect Encounter Resources Limited to open at $0.360, and during the day (based on 14 day Average True Range), to move between $0.325 and $0.375, which gives a possible trading interval of +/-$0.0249 (+/-7.12%) up or down from last closing price. If Encounter Resources Limited takes out the full calculated possible swing range there will be an estimated 14.25% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $0.335 (4.29%) than the resistance at $0.370 (5.71%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is Encounter Resources Limited stock A Buy?
The Encounter Resources Limited stock holds several negative signals and despite the positive trend, we believe Encounter Resources Limited 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 Buy to a Sell candidate.
Current score: -3.107 Sell Candidate Downgraded
Predicted Opening Price for Encounter Resources Limited of Wednesday, May 29, 2024
| Fair opening price May 29, 2024 | Current price |
|---|---|
| $0.360 ( 2.86%) | $0.350 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ENR.AX
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.390 | 11.43 % | |
| R2 | 0.379 | 8.15 % | ||
| R1 | 0.371 | 6.13 % | ||
| Current price: | 0.350 | |||
| Support | S1 | 0.349 | -0.417 % | |
| S2 | 0.341 | -2.44 % | ||
| S3 | 0.330 | -5.71 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.420 | 20.00 % | |
| R2 | 0.395 | 12.86 % | ||
| R1 | 0.370 | 5.71 % | ||
| Current price | 0.350 | |||
| Support | S1 | 0.335 | -4.29% | |
| S2 | 0.325 | -7.14% | ||
| S3 | 0.270 | -22.86% |
ENR Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Dec 28, 2017 | Dec 28, 2017 | Dec 28, 2017 | $0.0040 | 4.65% |
FAQ
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