Why is HEG Stock Price Falling?
The stock HEG entered a sideways trend in July 19, ranging between 900 and 1500. This fluctuation indicates a lack of clear upward or downward momentum. In 2020, the stock moved between 1300 and 865, showing a bearish bias, which signifies a downward trend. While the stock experienced a significant upward movement from April 2017, starting with a monthly close of 312.5, it maintained an upward trend until August 2018, reaching a peak of 4542. Despite this peak, the stock faced a downturn, with a monthly close of 4181 in November 2018, marking the start of a new downward movement.
Current Stock Price Analysis
The July 19, 2019, monthly bar of HEG has a range of 919-1519 and acts as a mother bar, with all monthly bars until January 2020 becoming its internal bars. In February 2020, the monthly close of 875 was well below the 919 low, indicating a potential breakout. However, the breakout is yet to be confirmed by the close of March. Observing the daily bars from this week, a long-range bar was seen on March 2nd with a range of 980-860. This was followed by a triangle pattern, and today's daily bar broke the triangle downwards, indicating a dozi bar with limited volume, showing bearish bias.
Technical Indicators and Future Predictions
The latest daily closes have remained below the 13-day moving average (DMA), which is currently at 955. There was a false failed crossover attempt of the 13DMA on March 4th and 5th. Given the inside bar pattern, its downward breakout from 860 is expected to take the stock towards the 800 level. Once the 860 level is broken, there will be a swift movement towards 830, and then potentially 800. Key support levels for the stock are at 892, 870, and 860, while immediate resistance levels are at 944, 955, and 980.
Market Theories and Stock Discounting
A unique market theory surrounding HEG suggests that its upward journey was rapid, and the stock has been discounted based on the assumption that the future will not be as promising. The market behaves in reverse, discounting the future prospects of the company. Therefore, even though the stock may have reached a peak of over 4000, the expectation is that this level will not be crossed again in the life of this company.
Conclusion
HEG's stock price is currently in a bearish sideways trend, with a significant drop from its peak in 2018. The stock's performance is influenced by market assumptions about its future, making it a volatile investment. Traders and investors should closely monitor the stock's trend, moving averages, and resistance levels to make informed decisions. The stock's long-term outlook remains uncertain, and any future bounce-backs may be temporary.