UTEK - Ultratech Fri 13'th Jan 2017
Strong Buy Candidate
Stock analysis for Fri 13'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-06
Ultratech Stock Analysis
Ultratech gained 1.49% in the last trading day rising from, USD 24.83 to USD 25.20. The price has risen in 6 of the last 10 days days and is up by 4.52% over the past 2 weeks. Volume fell in the last day by -148 796 shares and ,in total, 68 395 shares bought and sold for approximately USD 1.72 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.
Ultratech has broken the narrow and strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at USD 24.98, a level that may pose a second chance to hit a runner. According to fan-theory USD 27.44 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.
Only positive signals in the chart today. Ultratech 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 24.66 and USD 23.56. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday December 30, 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 80 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
On the downside the stock finds support just below today's level from accumulated volume at USD 23.53 and USD 21.92 There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well during the next couple of days.
There is natural risk involved when a stock is testing a support level, as if this is broken the stock may fall to the next support level. In this case Ultratech finds support just below today's level at 23.53. If this is broken the next support from accumulated volume will be at 21.92 and 21.79.
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 0.54 between high and low, and this equals 2.17%. For the last week, the stock has had a daily average volatility of 2.47%.
The stock is extremely overbought on RSI14 (80). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stoploss: USD 24.09 (-4.40%) ( Criterias: risk and break of trend)
Ultratech holds several positive signals and has broken the strong rising trend up. As the stock is also in very good technical shape, 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.