Luckin Coffee Inc. Stock Forecast
A very strong day for Luckin Coffee Inc. stock price on Thursday
(Updated on May 02, 2024)
The Luckin Coffee Inc. stock price gained 7.19% on the last trading day (Thursday, 2nd May 2024), rising from $21.00 to $22.51. During the last trading day the stock fluctuated 7.78% from a day low at $21.22 to a day high of $22.87. The price has fallen in 5 of the last 10 days but is still up by 3.97% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 2 million more shares were traded than the day before. In total, 3 million shares were bought and sold for approximately $76.00 million.
The stock is moving within a very wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Luckin Coffee Inc. stock with a 90% probability to be traded between $18.99 and $25.60 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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LKNCY Signals & Forecast
A buy signal was issued from a pivot bottom point on Monday, April 29, 2024, and so far it has risen 7.29%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Luckin Coffee Inc. stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at $23.51. On a fall, the stock will find some support from the short-term average at $21.44. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
Support, Risk & Stop-loss for Luckin Coffee Inc. stock
On the downside, the stock finds support just below today's level from accumulated volume at $21.00 and $20.88. 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, Luckin Coffee Inc. finds support just below today's level at $21.00. If this is broken, then the next support from accumulated volume will be at $20.88 and $20.21.
This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $1.65 between high and low, or 7.78%. For the last week, the stock has had daily average volatility of 6.52%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (LKNCY) For The Upcoming Trading Day Of Friday 3rd
For the upcoming trading day on Friday, 3rd we expect Luckin Coffee Inc. to open at $22.20, and during the day (based on 14 day Average True Range), to move between $21.29 and $23.73, which gives a possible trading interval of +/-$1.22 (+/-5.40%) up or down from last closing price. If Luckin Coffee Inc. takes out the full calculated possible swing range there will be an estimated 10.80% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $23.76 (5.57%) than the support at $21.00 (6.71%), 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 Luckin Coffee Inc. stock A Buy?
Luckin Coffee Inc. 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.
Current score: -1.877 Sell Candidate Unchanged
Predicted Opening Price for Luckin Coffee Inc. of Friday, May 3, 2024
| Fair opening price May 3, 2024 | Current price |
|---|---|
| $22.20 ( 1.38%) | $22.51 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for LKNCY
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 23.85 | 5.95 % | |
| R2 | 23.22 | 3.15 % | ||
| R1 | 22.83 | 1.42 % | ||
| Current price: | 22.51 | |||
| Support | S1 | 21.57 | -4.18 % | |
| S2 | 21.18 | -5.91 % | ||
| S3 | 20.55 | -8.71 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 25.05 | 11.28 % | |
| R2 | 24.00 | 6.62 % | ||
| R1 | 23.76 | 5.57 % | ||
| Current price | 22.51 | |||
| Support | S1 | 21.00 | -6.71% | |
| S2 | 20.88 | -7.24% | ||
| S3 | 20.21 | -10.22% |
FAQ
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