Sonel S.A. Stock Forecast

Sonel S.A. stock price down 2.16% on Thursday
(Updated on May 16, 2024)

SON.WA Signals & Forecast

The Sonel S.A. 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 17.82zł and 15.19zł. A breakdown below any of these levels will issue sell signals. 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. A sell signal was issued from a pivot top point on Monday, May 13, 2024, and so far it has fallen -3.47%. Further fall is indicated until a new bottom pivot has been found. Sonel S.A. 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". The very low volume increases the risk and reduces the other technical signals issued. The stock had a Golden Star Signal on Monday, October 30, 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 Sonel S.A. stock

Sonel S.A. finds support from accumulated volume at 17.75zł 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 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 1.15zł between high and low, or 6.55%. For the last week, the stock has had daily average volatility of 5.64%.

The Sonel S.A. 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. 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: 17.47zł (-3.50%) (This stock has high daily movements and this gives high risk. The RSI14 is 84 and this increases the risk substantially. There is a sell signal from a pivot top found 3 days ago.)

Trading Expectations (SON.WA) For The Upcoming Trading Day Of Friday 17th

For the upcoming trading day on Friday, 17th we expect Sonel S.A. to open at 18.12zł, and during the day (based on 14 day Average True Range), to move between 17.54zł and 18.66zł, which gives a possible trading interval of +/-0.562zł (+/-3.10%) up or down from last closing price. If Sonel S.A. takes out the full calculated possible swing range there will be an estimated 6.21% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at 17.75zł (1.93%) than the resistance at 18.50zł (2.21%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Sonel S.A. 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 Sonel S.A. stock to perform well in the short-term.

Current score: 3.026 Buy Candidate Unchanged

Predicted Opening Price for Sonel S.A. of Friday, May 17, 2024

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