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Gulf Resources Inc. (GURE)

Gulf Resources stock forecast: buy or sell

Close on Sep 25th, 2020
$5.07 0.01%
3 months performance
-0.04%
Published: September 25th, 2020 - 22:10

Gulf Resources stock outlook

  • Gulf Resources closed today at $5.07 (1.2%) prior to reporting earnings at
  • In mid-July price started dropping and printed¬†2 consecutive lower tops. this downtrend marked a -21.03% loss(from its highs at $6.42).
  • Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People's Republic of China.

Please read:
The opinions given in this article are personal and not recommendations for you to buy or sell shares. The author of this text does not know the individual conditions of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for education purposes only

Gulf Resources stock charts

Should I buy Gulf Resources stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is GURE stock a buy?

In the current situation of Gulf Resources there is not any eligible buy setup. This doesn't mean we expect a selloff for GURE in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

Should I sell Gulf Resources stock?

"To sell or not to sell", if you are holding Gulf Resources stock?. Similarly to when we have to buy shares, choosing when is appropiate time to sell is not a whimsy decision, and we must follow our own trading style. When selling, as well as buying, our strategies are very simple to follow but are only valid for selling stocks in your porfolio, not for shorting Gulf Resources stock

A guiding principle is that you should not keep a trading operation that yields higher than expected losses by the time of the buy. The moment to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Gulf Resources stock?

Currently, Gulf Resources stock doesn't match any of our preferred sell setups, so if you hold Gulf Resources stock and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Gulf Resources stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating posted in the previous month for Gulf Resources

Technical analysis

Gulf Resources accumulates a selloff of -21.03% since its latest top mid-July at $6.42. Like in all downtrends, the stock oscillates drawing lower highs and lows. In this case, we have seen 3 consecutive lower tops

SMAs overview

Moving averages are indicators for traders to gauge direction. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

GURE SMAs chart

Supports and resistances

Investors use support and resistance levels as a way to spot price points in the stock price action that may work as barriers, preventing the price of shares to move up or down. A support level is a level where the price may stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue declining until approaching another support level. On the other side, resistances are where the price may find resistance as it rises. In the same way, this means that the price is more likely to "bounce off" at this level, and if it finally crosses this level, it will rally more easily until it finds the next resistance

The current resistance levels are:

  • R1: $5.11 (0.79% above)
  • R2: $5.25 (3.55% above)
  • R3: $5.29 (4.34% above)
  • The current support levels are:

  • S1: $5.05 (-0.39% below)
  • S2: $5.00 (-1.38% below)
  • S3: $4.88 (-3.75% below)
  • Bollinger bands

    The so-called Bollinger bands are a widespread practice introduced by John Bollinger. It comprises 3 lines that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    GURE RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price action to reveal when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI crossed up the oversold level of 30 on September 2 after just being in the oversold zone for just one day (what can be considered a strength signal). The RSI value today was 46.09. Gulf Resources price skyrocketed a 5.63% since RSI left the oversold zone

    GURE RSI chart

    Earnings and financials

    Gulf Resources Inc. (GURE) posted adjusted EPS for the fiscal Q2 that met analysts' expectations. Quarterly EPS was $0.00 per share instead of $0.00. The company reported revenue for this quarter was $5.4 million aligned with the market forecasts as well.

    This compares to earnings of $-0.02 per share same quarter last year, so current EPS is an increase of 100%. Turnover skyrocketed a 13298.7% on an annualized basis in the second-quarter, from $400,000 to $5.4M last quarter.

    Gulf Resources is presenting quarterly financial report. Earnings reporting day has a more than usual risk for traders as the results posted can soar and sink the stock price with exceptionally low liquidity and not respecting your buy or stop-loss orders. You can probably uncover more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.gulfresourcesinc.com.

    GURE revenues and profits chart