Rare Element Resources Ltd. Stock Forecast
High volatility in Rare Element Resources Ltd. stock price on Friday which ended trading at $0.235
(Updated on May 17, 2024)
The Rare Element Resources Ltd. stock price gained 6.90% on the last trading day (Friday, 17th May 2024), rising from $0.220 to $0.235. During the last trading day the stock fluctuated 16.52% from a day low at $0.210 to a day high of $0.245. The price has risen in 7 of the last 10 days and is up by 22.32% over the past 2 weeks. Volume fell on the last day by -181 thousand shares and in total, 156 thousand shares were bought and sold for approximately $36.70 thousand. 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.
The stock lies in the upper part of a very wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $0.238 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 10.09% during the next 3 months and, with a 90% probability hold a price between $0.190 and $0.262 at the end of this 3-month period.
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REEMF Signals & Forecast
The Rare Element Resources 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 $0.203 and $0.195. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, March 08, 2024, and so far it has risen 51.79%. 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). Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may not be. The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for Rare Element Resources Ltd. stock
On the downside, the stock finds support just below today's level from accumulated volume at $0.220 and $0.200. 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, Rare Element Resources Ltd. finds support just below today's level at $0.220. If this is broken, then the next support from accumulated volume will be at $0.200 and $0.184.
This stock has average movements during the day, but be aware of low or falling volume as this increases the risk. During the last day, the stock moved $0.0347 between high and low, or 16.52%. For the last week the stock has had daily average volatility of 13.05%.
Our recommended stop-loss: $0.228 (-3.00%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 49 days ago.)
Trading Expectations (REEMF) For The Upcoming Trading Day Of Monday 20th
For the upcoming trading day on Monday, 20th we expect Rare Element Resources Ltd. to open at $0.230, and during the day (based on 14 day Average True Range), to move between $0.218 and $0.253, which gives a possible trading interval of +/-$0.0176 (+/-7.50%) up or down from last closing price. If Rare Element Resources Ltd. takes out the full calculated possible swing range there will be an estimated 15.00% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $0.220, some $0.0152 (6.45%) from the current price of $0.235, our system finds the risk reward attractive.
Is Rare Element Resources Ltd. stock A Buy?
Rare Element Resources Ltd. holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during 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: 7.882 Strong Buy Candidate Upgraded
Predicted Opening Price for Rare Element Resources Ltd. of Monday, May 20, 2024
| Fair opening price May 20, 2024 | Current price |
|---|---|
| $0.230 ( 2.25%) | $0.235 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for REEMF
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.265 | 12.50 % | |
| R2 | 0.251 | 6.87 % | ||
| R1 | 0.243 | 3.39 % | ||
| Current price: | 0.235 | |||
| Support | S1 | 0.217 | -7.88 % | |
| S2 | 0.209 | -11.36 % | ||
| S3 | 0.195 | -17.00 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 0.235 | |||
| Support | S1 | 0.220 | -6.45% | |
| S2 | 0.200 | -15.21% | ||
| S3 | 0.184 | -21.97% |
FAQ
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