Big movements in ReTo Eco-Solutions Inc. stock
The ReTo Eco-Solutions Inc. $Reto Eco-solutions Inc.(RETO)$ stock price fell by -0.299% on Wednesday, 23rd Aug 2023 from $6.70 to $6.68. During the last trading day the stock fluctuated 13.40% from a day low at $6.49 to a day high of $7.36. The price has risen in 6 of the last 10 days and is up by 116.18% over the past 2 weeks. Volume has increased on the last day by 4 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 4 million shares were bought and sold for approximately $28.97 million.
The stock lies in the upper part of a very wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $6.76 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 116.30% during the next 3 months and, with a 90% probability hold a price between $6.40 and $14.62 at the end of this 3-month period.
RETO Signals & Forecast
The ReTo Eco-Solutions Inc. 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 $5.62 and $2.87. 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 Tuesday, August 22, 2023, and so far it has fallen -0.299%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
Support, Risk & Stop-loss for ReTo Eco-Solutions Inc. stock
On the downside, the stock finds support just below today's level from accumulated volume at $6.11 and $6.10. There is a 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, ReTo Eco-Solutions Inc. finds support just below today's level at $6.11. If this is broken, then the next support from accumulated volume will be at $6.10 and $5.09.
This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $0.87 between high and low, or 13.40%. For the last week, the stock has had daily average volatility of 19.44%.
The ReTo Eco-Solutions Inc. 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: $6.52 (-2.41%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 85 and this increases the risk substantially. There is a sell signal from a pivot top found 1 day ago.)
Trading Expectations (RETO) For The Trading Day Of Thursday 24th
For the trading day on Thursday, 24th we expect ReTo Eco-Solutions Inc. to open at $6.84, and during the day (based on 14 day Average True Range), to move between $5.92 and $7.44, which gives a possible trading interval of +/-$0.756 (+/-11.31%) up or down from last closing price. If ReTo Eco-Solutions Inc. takes out the full calculated possible swing range there will be an estimated 22.62% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $6.70 (0.30%) than the support at $6.11 (8.53%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is ReTo Eco-Solutions Inc. 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 ReTo Eco-Solutions Inc. stock to perform well in the short-term. 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 Buy candidate.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
