CNCO - Cencosud SA Fri 20'th Jan 2017
Stock analysis for Fri 20'th Jan 2017 (Updated daily)
Hold candidate since 2017-01-20
Cencosud SA Stock Analysis
Cencosud SA gained 2.72% in the last trading day, rising from USD 8.46 to USD 8.69. The price has been going up and down for this period, and there has been a 1.4% gain for the last 2 weeks. Volume fell in the last day by -159 713 shares and ,in total, 37 658 shares bought and sold for approximately USD 327 248. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Cencosud SA lies the upper part of a wide and strong falling trend in the short term, and this will 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 USD 8.80 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -13.7% during the next 3 months and, with 90% probability hold a price between USD 6.60 and USD 7.60 at the end of this period.
Cencosud SA holds buy signals from both short- and long-term moving averages, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down there will be some support from the lines at USD 8.58 and USD 8.59. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday January 19, 2017, which indicates further gains until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not.
Relative Strength Index (RSI)
RSI14 is 53 and the stock is currently not being overbought or oversold
Support & Resistance
Cencosud SA finds support from accumulated volume at USD 8.68, USD 8.46, and USD 8.32. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 8.77, USD 8.98 and USD 9.65.
The stock is about to test the resistance from accumulated volume at USD 8.77 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
In general the stock tends to have controlled movements, but the low liquidity has increased the risk substantially.
Our recommended stoploss: USD 8.48 (-2.42%) ( based on support and risk)
Cencosud SA holds several positive signals, but we still don't find these to be enough for a buy-recommendation. At the current level we recommend a hold or accumulate position awaiting further development. We have upgraded our recommendation for this stock since last evaluation from a Sell Candidate to a Hold/Accumulate.