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High volatility in Zentek Ltd. stock price on Friday which ended trading at $1.76
(Updated on Nov 15, 2024)
Buy or Hold candidate since Nov 04, 2024 Gain 60.00%
The Zentek Ltd. stock price gained 25.71% on the last trading day (Friday, 15th Nov 2024), rising from $1.40 to $1.76. It has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 23.78% from a day low at $1.43 to a day high of $1.77. The price has risen in 8 of the last 10 days and is up by 87.23% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 219 thousand more shares were traded than the day before. In total, 309 thousand shares were bought and sold for approximately $543.92 thousand.
Given the current short-term trend, the stock is expected to fall -7.41% during the next 3 months and, with a 90% probability hold a price between $0.665 and $1.63 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
ZEN.V Signals & ForecastThe Zentek 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 $1.28 and $1.03. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, October 15, 2024, and so far it has risen 128.57%. 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). Zentek Ltd. has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.
Support, Risk & Stop-loss for Zentek Ltd. stockOn the downside, the stock finds support just below today's level from accumulated volume at $1.40 and $1.33. With no support from accumulated volume below today's level the risk is increased, as a drop below the support at $1.33 may give a huge drop in the stock price.
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 $0.340 between high and low, or 23.78%. For the last week, the stock has had daily average volatility of 11.35%.
The Zentek Ltd. 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 stock may go long and hard while being overbought and the RSI is still moving upwards. 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: $1.70 (-3.48%) (This stock has high daily movements and this gives high risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 23 days ago.)
Trading Expectations (ZEN.V) For The Upcoming Trading Day Of Monday 18thFor the upcoming trading day on Monday, 18th we expect Zentek Ltd. to open at $1.65, and during the day (based on 14 day Average True Range), to move between $1.64 and $1.88, which gives a possible trading interval of +/-$0.116 (+/-6.59%) up or down from last closing price. If Zentek Ltd. 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 @ $1.40, some $0.360 (20.45%) from the current price of $1.76, our system finds the risk reward attractive.
Is Zentek Ltd. stock A Buy?
Zentek Ltd. 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 Strong 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. |
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