CRH - CRH PLC Fri 13'th Jan 2017
Strong Buy Candidate
Stock analysis for Fri 13'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-10
CRH PLC Stock Analysis
CRH PLC gained 1.07% in the last trading day rising from, USD 34.65 to USD 35.02. The price has risen in 6 of the last 10 days days and is up by 3.43% over the past 2 weeks. Volume fell in the last day by -16 722 shares and ,in total, 516 622 shares bought and sold for approximately USD 18.09 million. 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.
CRH PLC lays in the middle of a wide and weak rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 4.1% during the next 3 months and, with 90% probability will hold a price between USD 34.05 and USD 37.66 at the end of this period.
Only positive signals in the chart today. CRH PLC holds buy signals from both short- and long-term moving averages. In addition, 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 USD 34.32 and USD 33.65. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday December 22, 2016, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely.
Relative Strength Index (RSI)
The stock holds a RSI14 at 72 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
Support & Resistance
CRH PLC finds support from accumulated volume at USD 34.16, USD 33.73, and USD 32.68. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 35.18.
The stock is about to test the resistance at USD 35.18. If this level is broken the stock may move faster and we often see a peak at the end of such a break, posing a good sales opportunity as in 90% of the cases you will get a reaction back to the level broken before new gains. A break should be followed by increasing volume else the break may be false and despite a break of the actual resistance level the stock falls back fairly soon.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day the stock moved USD 0.27 between high and low, and this equals 0.78%. For the last week, the stock has had a daily average volatility of 1.05%.
Our recommended stoploss: USD 33.33 (-4.83%) ( criteria: risk and position in trend)
CRH PLC holds several positive signals and are within a weak rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at current levels and are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Buy Candidate to a Strong Buy Candidate.