MTOR - Meritor Inc Fri 20'th Jan 2017
Stock analysis for Fri 20'th Jan 2017 (Updated daily)
Hold candidate since 2017-01-20
Meritor Inc Stock Analysis
Meritor Inc fell by -0.51% in the last day, from USD 13.85 to USD 13.78. The price has risen in 6 of the last 10 days days and is up by 6.49% over the past 2 weeks. Volume fell in the last day along with the stock, which is actually a good sign as volume should follow the stock. In the last day the trading volume fell by -121 546 shares and in total, 929 234 shares bought and sold for approx. USD 12.80 million.
Meritor Inc lies in the middle of a wide and strong 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 29.7% during the next 3 months and, with 90% probability hold a price between USD 16.63 and USD 19.25 at the end of this period.
Meritor Inc 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 13.64 and USD 13.05. A break down below any of these levels will issue sell signals. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Thursday January 19, 2017, which indicates further falls until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Relative Strength Index (RSI)
RSI14 is 66 and the stock is currently not being overbought or oversold
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at USD 12.94 and USD 12.63. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 13.85.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Meritor Inc finds support just below today's level at 12.94. If this is broken, then the next support from accumulated volume will be at 12.63 and 12.29. The stock is about to test the resistance at USD 13.85. 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 0.23 (1.68%) between high and low. For the last week, the stock has had a daily average volatility of 3.20%.
Our recommended stoploss: USD 13.29 (-3.56%) ( criteria: risk and position in trend)
Meritor Inc 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. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Strong Buy Candidate to a Hold/Accumulate.