Karelian Diamond Resources Stock Forecast

Volatile ride for Karelian Diamond Resources stock price on Thursday moving between £2.51 and £2.78
(Updated on Apr 18, 2024)

KDR.L Signals & Forecast

The Karelian Diamond Resources 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 £2.74 and £2.30. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, March 15, 2024, and so far it has risen 39.00%. 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 Karelian Diamond Resources stock

Karelian Diamond Resources finds support from accumulated volume at £2.75 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 very much during the day (volatility) and with periodic low trading volume this stock is considered to be "very high risk". During the last day, the stock moved £0.270 between high and low, or 10.76%. For the last week the stock has had daily average volatility of 8.71%.

The Karelian Diamond Resources stock is extremely overbought on RSI14 (84). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Our recommended stop-loss: £2.69 (-3.26%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 84 and this increases the risk substantially. There is a buy signal from a pivot bottom found 22 days ago.)

Trading Expectations (KDR.L) For The Upcoming Trading Day Of Friday 19th

For the upcoming trading day on Friday, 19th we expect Karelian Diamond Resources to open at £2.69, and during the day (based on 14 day Average True Range), to move between £2.60 and £2.96, which gives a possible trading interval of +/-£0.183 (+/-6.59%) up or down from last closing price. If Karelian Diamond Resources takes out the full calculated possible swing range there will be an estimated 13.18% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ £2.75, some £0.0300 (1.08%) from the current price of £2.78, our system finds the risk reward attractive.

Is Karelian Diamond Resources stock A Buy?

Karelian Diamond Resources holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.

Current score: 0.000 Hold/Accumulate Downgraded

Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.

Predicted Opening Price for Karelian Diamond Resources of Friday, April 19, 2024

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