Ambarella Stock Forecast
Ambarella stock price up 2.05% on Friday
(Updated on May 03, 2024)
The Ambarella stock price gained 2.05% on the last trading day (Friday, 3rd May 2024), rising from $46.89 to $47.85. During the last trading day the stock fluctuated 2.61% from a day low at $47.44 to a day high of $48.68. The price has risen in 8 of the last 10 days and is up by 16.74% over the past 2 weeks. Volume fell on the last day by -87 thousand shares and in total, 348 thousand shares were bought and sold for approximately $16.66 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies the upper part of a very wide and falling trend in the short term, and this may 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 $48.99 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 -21.84% during the next 3 months and, with a 90% probability hold a price between $30.31 and $38.29 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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AMBA Signals & Forecast
The Ambarella stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, 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 $45.27 and $47.06. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 16.74%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Ambarella stock
Ambarella finds support from accumulated volume at $47.75 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $1.24 between high and low, or 2.61%. For the last week, the stock has had daily average volatility of 4.66%.
Our recommended stop-loss: $46.26 (-3.32%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 10 days ago.)
Trading Expectations (AMBA) For The Upcoming Trading Day Of Monday 6th
For the upcoming trading day on Monday, 6th we expect Ambarella to open at $47.99, and during the day (based on 14 day Average True Range), to move between $46.03 and $49.67, which gives a possible trading interval of +/-$1.82 (+/-3.80%) up or down from last closing price. If Ambarella takes out the full calculated possible swing range there will be an estimated 7.60% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $47.75 (0.21%) than the resistance at $49.15 (2.72%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is Ambarella stock A Buy?
Ambarella holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.
Current score: 0.000 Hold/Accumulate Unchanged
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for Ambarella of Monday, May 6, 2024
| Fair opening price May 6, 2024 | Current price |
|---|---|
| $47.99 ( 0.286%) | $47.85 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for AMBA
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 49.23 | 2.88 % | |
| R2 | 48.75 | 1.89 % | ||
| R1 | 48.46 | 1.28 % | ||
| Current price: | 47.85 | |||
| Support | S1 | 47.51 | -0.704 % | |
| S2 | 47.22 | -1.32 % | ||
| S3 | 46.75 | -2.31 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 57.99 | 21.19 % | |
| R2 | 55.85 | 16.72 % | ||
| R1 | 49.15 | 2.72 % | ||
| Current price | 47.85 | |||
| Support | S1 | 47.75 | -0.209% | |
| S2 | 44.49 | -7.02% | ||
| S3 | 42.56 | -11.06% |
FAQ
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