Strong Buy Candidate
Tue 23'rd May 2017
51job Stock Analysis
Technical stock analysis for Tue 23'rd May 2017
Buy candidate since 2017-05-19 Gain 1.62%
51job lies in the middle of a strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 27.4% during the next 3 months and, with 90% probability hold a price between USD 53.75 and USD 57.81 at the end of this period.
Only positive signals in the chart today. 51job holds buy signals from both short- and long-term moving averages. In addition, 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 USD 44.08 and USD 41.26. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday May 18, 2017, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
* Golden Star Signal* is when the short-term moving average, the long-term moving average, and priceline meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
Relative Strength Index (RSI)
The stock holds a RSI14 at 79 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at USD 36.85 and USD 35.60. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 44.56.
There is 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, 51job finds support just below today's level at 36.85. If this is broken, then the next support from accumulated volume will be at 35.60 and 34.51. The stock is about to test the resistance at USD 44.56. If this level is broken the stock may move faster and we often see a peak at the end of such a break, posing a good sales opportunity as in 90% of the cases you will get a reaction back to the level broken before new gains. A break should be followed by increasing volume else the break may be false and despite a break of the actual resistance level the stock falls back fairly soon.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved USD 0.53 (1.20%) between high and low. For the last week, the stock has had a daily average volatility of 2.42%.
Our recommended stoploss: USD 42.23 (-5.03%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 79 and this increases the risk substantially. There is a buy signal from pivot bottom found 3 days ago.)
51job 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 recommendation for this stock since last evaluation from a Hold/Accumulate to a Strong Buy Candidate.