Gem Diamonds Ltd Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
High volatility in Gem Diamonds Ltd stock price on Friday which ended trading at £13.28
(Updated on May 03, 2024)
The Gem Diamonds Ltd stock price gained 1.53% on the last trading day (Friday, 3rd May 2024), rising from £13.08 to £13.28. It has now gained 5 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 10.80% from a day low at £12.55 to a day high of £13.90. The price has risen in 7 of the last 10 days and is up by 54% over the past 2 weeks. Volume fell on the last day by -675 thousand shares and in total, 540 thousand shares were bought and sold for approximately £7.16 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
Given the current short-term trend, the stock is expected to fall -5.40% during the next 3 months and, with a 90% probability hold a price between £7.50 and £12.56 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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GEMD.L Signals & Forecast
Mostly positive signals in the chart today. The Gem Diamonds Ltd 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 £9.99 and £9.14. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 26, 2024, and so far it has risen 66.15%. 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). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Gem Diamonds Ltd stock
Gem Diamonds Ltd finds support from accumulated volume at £13.08 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved £1.36 between high and low, or 10.80%. For the last week, the stock has had daily average volatility of 19.19%.
The Gem Diamonds Ltd 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 and the RSI is still moving upwards. 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: £12.89 (-2.88%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 81 and this increases the risk substantially. There is a buy signal from a pivot bottom found 5 days ago.)
Trading Expectations (GEMD.L) For The Upcoming Trading Day Of Tuesday 7th
For the upcoming trading day on Tuesday, 7th we expect Gem Diamonds Ltd to open at £13.24, and during the day (based on 14 day Average True Range), to move between £12.26 and £14.29, which gives a possible trading interval of +/-£1.01 (+/-7.61%) up or down from last closing price. If Gem Diamonds Ltd takes out the full calculated possible swing range there will be an estimated 15.23% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ £13.08, some £0.200 (1.51%) from the current price of £13.28, our system finds the risk reward attractive.
Is Gem Diamonds Ltd stock A Buy?
Gem Diamonds Ltd holds several positive signals and despite the stock being in a falling trend, we considered it to be a good choice at these current levels. We expect Gem Diamonds Ltd stock will perform very well in the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Strong Buy candidate.
Current score: 5.625 Strong Buy Candidate Upgraded
Predicted Opening Price for Gem Diamonds Ltd of Tuesday, May 7, 2024
| Fair opening price May 7, 2024 | Current price |
|---|---|
| £13.24 ( 0.264%) | £13.28 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for GEMD.L
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 14.60 | 9.94 % | |
| R2 | 14.08 | 6.04 % | ||
| R1 | 13.76 | 3.64 % | ||
| Current price: | 13.28 | |||
| Support | S1 | 12.72 | -4.16 % | |
| S2 | 12.40 | -6.57 % | ||
| S3 | 11.89 | -10.47 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 13.28 | |||
| Support | S1 | 13.08 | -1.51% | |
| S2 | 10.15 | -23.54% | ||
| S3 | 10.08 | -24.11% |
GEMD Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Mar 17, 2022 | May 19, 2022 | Jun 21, 2022 | £2.70 | 5.63% |
| 2 | Mar 11, 2021 | May 13, 2021 | Jun 15, 2021 | £2.50 | 3.43% |
| 3 | Mar 15, 2016 | May 12, 2016 | Jun 14, 2016 | £3.50 | 2.54% |
| 4 | Mar 17, 2015 | May 07, 2015 | Jun 09, 2015 | £5.00 | 3.28% |
FAQ
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