Gerdau SA Stock Forecast
A very red day for Gerdau SA stock price after a -16.78% fall in the Thursday trading session
(Updated on Apr 18, 2024)
The Gerdau SA stock price fell by -16.78% on the last day (Thursday, 18th Apr 2024) from $4.29 to $3.57. During the last trading day the stock fluctuated 2.54% from a day low at $3.55 to a day high of $3.64. The price has fallen in 7 of the last 10 days and is down by -21.54% for this period. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -250 thousand shares and in total, 7 million shares were bought and sold for approximately $24.58 million.
The stock has broken the horizontal trend down. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately $4.18 is considered to be a "second chance" to get out before further fall. It is, however, important to note that false breaks may appear and that the price may move back into the horizontal trend. A break on increasing volume is considered to be more significant and reliable than breaks on low volume.
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GGB Signals & Forecast
There are few to no technical positive signals at the moment. The Gerdau SA stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $4.27 and $4.34. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Monday, April 08, 2024, and so far it has fallen -22.22%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss for Gerdau SA stock
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.
This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $0.0900 (2.54%) between high and low. For the last week, the stock has had daily average volatility of 3.06%.
Gerdau SA is oversold on RSI14 (24). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (GGB) For The Upcoming Trading Day Of Friday 19th
For the upcoming trading day on Friday, 19th we expect Gerdau SA to open at $3.59, and during the day (based on 14 day Average True Range), to move between $3.39 and $3.75, which gives a possible trading interval of +/-$0.176 (+/-4.92%) up or down from last closing price. If Gerdau SA takes out the full calculated possible swing range there will be an estimated 9.85% move between the lowest and the highest trading price during the day.
With no support below and resistance from accumulated volume @ $4.24, some $0.670 (18.77%) from the current price of $3.57, our system finds the risk reward not very attractive.
Is Gerdau SA stock A Buy?
Gerdau SA holds several negative signals and is within a falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.
Current score: -1.872 Sell Candidate Downgraded
Predicted Opening Price for Gerdau SA of Friday, April 19, 2024
| Fair opening price April 19, 2024 | Current price |
|---|---|
| $3.59 ( 0.467%) | $3.57 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for GGB
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 3.68 | 2.99 % | |
| R2 | 3.64 | 2.02 % | ||
| R1 | 3.62 | 1.43 % | ||
| Current price: | 3.57 | |||
| Support | S1 | 3.55 | -0.496 % | |
| S2 | 3.53 | -1.09 % | ||
| S3 | 3.50 | -2.05 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 4.30 | 20.45 % | |
| R2 | 4.28 | 19.89 % | ||
| R1 | 4.24 | 18.77 % | ||
| Current price | 3.57 | |||
| Support | S1 | 0 | . | |
| S2 | 0 | . | ||
| S3 | 0 | . |
GGB Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Feb 22, 2024 | Mar 04, 2024 | Mar 19, 2024 | $0.0202 | 0.474% |
| 2 | Nov 07, 2023 | Nov 20, 2023 | Dec 20, 2023 | $0.0962 | 2.07% |
| 3 | Aug 21, 2023 | Aug 21, 2023 | Sep 06, 2023 | $0.0878 | 1.73% |
| 4 | May 03, 2023 | May 16, 2023 | Jun 06, 2023 | $0.101 | 1.99% |
| 5 | Mar 02, 2023 | Mar 15, 2023 | Jun 06, 2023 | $0.0362 | 0.712% |
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