Wed 17'th Oct 2018
Zanaga Iron Ore Company Limited Stock Analysis
Technical stock analysis for Wed 17'th Oct 2018
Zanaga Iron Ore Company Limited fell by -1.84% in the last day from £12.23 to £12.00 and has now fallen 4 days in a row. The price has fallen in 8 of the last 10 days and is down by -15.19% for this period. Volume fell in the last day along with the stock, which is actually a good sign as volume should follow the stock. In the last day the trading volume fell by -256 831 shares and in total 315 707 shares bought and sold for approximately £3.79 million.
Zanaga Iron Ore Company Limited has broken the very wide and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point (£13.96) are considered to be a "second chance" to get out. According to the fan-theory £3.95 will represent the new bottom line of the next trend, but it is far too early to say this for certain.
There are few to none technical positive signals at the moment. Zanaga Iron Ore Company Limited holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at £12.52 and £16.96. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Tuesday October 02, 2018, which indicates further falls until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Relative Strength Index (RSI)
The stock currently holds a RSI14 at 22 and is oversold on RSI14. The stock being oversold is no guarantee for instant reaction up as some stocks may be oversold for a long time. It is important to review the previous RSI-history to get an indication of the RSI-sensitiveness.
Support & Resistance
Zanaga Iron Ore Company Limited finds support from accumulated volume at £11.98.
This stock may move much during a 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 £0.25 between high and low, or 2.13%. For the last week, the stock has had a daily average volatility of 4.94%.
Zanaga Iron Ore Company Limited is oversold on RSI14 (22). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
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Zanaga Iron Ore Company Limited holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.Click for Top 5 Sell Candidates
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