Rainbow Foundations Limited Stock Forecast

Rainbow Foundations Limited stock price up 0.88% on Friday
(Updated on Jun 28, 2024)

RAINBOWF.BO Signals & Forecast

The Rainbow Foundations Limited 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 ₹16.73 and ₹15.98. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, May 07, 2024, and so far it has risen 18.98%. Further rise is indicated until a new top pivot has been found. Rainbow Foundations Limited has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk. 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). The stock had a Golden Star Signal on Tuesday, July 11, 2023 in the long-term chart.

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 Rainbow Foundations Limited stock

Rainbow Foundations Limited finds support from accumulated volume at ₹17.07 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 ₹0.400 between high and low, or 2.35%. For the last week, the stock has had daily average volatility of 4.98%.

Since the Rainbow Foundations Limited has been rising for 6 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: ₹16.59 (-3.78%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 51 days ago.)

Trading Expectations (RAINBOWF.BO) For The Upcoming Trading Day Of Monday 1st

For the upcoming trading day on Monday, 1st we expect Rainbow Foundations Limited to open at ₹17.25, and during the day (based on 14 day Average True Range), to move between ₹16.25 and ₹18.23, which gives a possible trading interval of +/-₹0.99 (+/-5.72%) up or down from last closing price. If Rainbow Foundations Limited takes out the full calculated possible swing range there will be an estimated 11.45% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ ₹17.07, some ₹0.170 (0.99%) from the current price of ₹17.24, our system finds the risk reward attractive.

Is Rainbow Foundations Limited stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Rainbow Foundations Limited stock to perform well in the short-term.

Current score: 4.540 Buy Candidate Unchanged

Predicted Opening Price for Rainbow Foundations Limited of Monday, July 1, 2024

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