Eucatex S.A. Indústria e Comércio Stock Forecast

Weaker technical forecast for Eucatex S.A. Indústria e Comércio as stock downgraded to Sell Candidate.
(Updated on Jun 28, 2024)

EUCA4.SA Signals & Forecast

The Eucatex S.A. Indústria e Comércio 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 R$15.00. On a fall, the stock will find some support from the long-term average at approximately R$14.31. 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, May 16, 2024, and so far it has risen 10.95%. 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. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Eucatex S.A. Indústria e Comércio 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 Eucatex S.A. Indústria e Comércio stock

On the downside, the stock finds support just below today's level from accumulated volume at R$14.16 and R$13.93. 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, Eucatex S.A. Indústria e Comércio finds support just below today's level at R$14.16. If this is broken, then the next support from accumulated volume will be at R$13.93 and R$13.60.

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 R$0.520 between high and low, or 3.49%. For the last week, the stock has had daily average volatility of 3.88%.

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

Trading Expectations (EUCA4.SA) For The Upcoming Trading Day Of Monday 1st

For the upcoming trading day on Monday, 1st we expect Eucatex S.A. Indústria e Comércio to open at R$15.10, and during the day (based on 14 day Average True Range), to move between R$14.43 and R$15.55, which gives a possible trading interval of +/-R$0.555 (+/-3.70%) up or down from last closing price. If Eucatex S.A. Indústria e Comércio takes out the full calculated possible swing range there will be an estimated 7.41% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at R$15.25 (1.73%) than the support at R$14.16 (5.54%), 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 Eucatex S.A. Indústria e Comércio stock A Buy?

Eucatex S.A. Indústria e Comércio 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: -1.149 Sell Candidate Downgraded

Predicted Opening Price for Eucatex S.A. Indústria e Comércio of Monday, July 1, 2024

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