Is this Stock Safe to Play in?: China New Economy Fund Limited (HKSE:80)

China New Economy Fund Limited (HKSE:80) PERFORMANCE ANALYSIS IN FOCUS:

China New Economy Fund Limited (HKSE:80) has performed -11.818182% around last month and performed -3% over the last quarter. The stock showed return of -96.755853% over five years and registered weekly return of -3%. The stock has been watched at -25.384615% return throughout last twelve months.

Tracking last 52 weeks, the stock 52 week high price observed at HKD$0.188 and 52 week low seen at HKD$0.085. The 50 SMA is HKD$0.107657 and 200 SMA is HKD$0.109357. Moving averages can be used as support or resistance when a trader looks for a possible entry or exit in the market. This can also be said in the following way. In case the price makes a contact with the moving average on the price chart, the trader, examining closely this chart, will enter either into a long, or into a short position. Actually, this works in the same way as horizontal support or resistance lines. Moving averages are known as dynamic support and resistance, simply because they tend to change with prices.

China New Economy Fund Limited (HKSE:80) stock has changed HKD$-0.001 and moved -1.020403% whereas stock price touched at HKD$0.097 in last trade transaction. 360000 shares exchanged at hands while it’s an average volume stands with 2465846 shares. The company recorded relative volume of 0.15. When an analyst or an investor is researching a stock, it’s good to know what other investors think about it. After all, they might have some additional insight into the company or they might be creating a trend. Most popular methods for gauging market sentiment is to take a look at the recently traded volume.

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Volatility or average true range percent (ATRP 14) is 10%. The ATR expressed as a percentage of closing price. Average true range percent (ATRP) measures volatility on a relative level. ATRP allows securities to be compared whereas ATR does not. That means lower-priced stocks won’t necessarily have lower ATR values than higher-priced stocks.

VALAATION OBSERVATIONS:

It has a market cap of HKD$14597283.24. Using market capitalization to show the size of a company is important because company size is a basic determinant of various characteristics in which investors are interested, including risk.

TECHNICAL INDICATORS:

Now The company has RSI figure of 42.13. RSI compares the magnitude of recent gains to recent losses to see if an asset is oversold or overbought. RSI is plotted on a scale of 0-100. Generally, if it is above 70, the stock is considered overbought and so one can look to sell it. Similarly, an RSI of less than 30 indicates the stock is oversold and can be bought.

ADX value listed at 16.9. Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when the price is trending strongly. In many cases, it is the ultimate trend indicator. After all, the trend may be your friend, but it sure helps to know who your friends are. ADX is used to quantify trend strength. ADX calculations are based on a moving average of price range expansion over a given period of time. The default setting is 14 bars, although other time periods can be used.

ADX values help traders identify the strongest and most profitable trends to trade. The values are also important for distinguishing between trending and non-trending conditions. Many traders will use ADX readings above 25 to suggest that the trend is strong enough for trend-trading strategies. Conversely, when ADX is below 25, many will avoid trend-trading strategies. 0-25 shows Absent or Weak Trend, 25-50 indicates Strong Trend, 50-75 signals Very Strong Trend and 75-100 discloses Extremely Strong Trend.

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