ARCA biopharma Stock Forecast

ARCA biopharma stock downgraded from Strong Buy Candidate to Buy Candidate after Wednesday trading session.
(Updated on Apr 24, 2024)

ABIO Signals & Forecast

The ARCA biopharma stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, 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 $3.41 and $2.42. A breakdown 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 sell signal was issued from a pivot top point on Tuesday, April 23, 2024, and so far it has fallen -0.548%. 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 along with the price during the last trading day, which is technical positive. One should, however, note that this stock may have low liquidity in periods, which increases the general risk. The stock had a Golden Star Signal on Friday, September 15, 2023 in the long-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Support, Risk & Stop-loss for ARCA biopharma stock

On the downside, the stock finds support just below today's level from accumulated volume at $3.40 and $3.25. There is a 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, ARCA biopharma finds support just below today's level at $3.40. If this is broken, then the next support from accumulated volume will be at $3.25 and $3.08.

This stock may move very much during the day (volatility) and with periodic low trading volume this stock is considered to be "very high risk". During the last day, the stock moved $0.134 between high and low, or 3.72%. For the last week the stock has had daily average volatility of 6.10%.

The ARCA biopharma stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: $3.50 (-3.67%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 77 and this increases the risk substantially. There is a sell signal from a pivot top found 1 day ago.)

Trading Expectations (ABIO) For The Upcoming Trading Day Of Thursday 25th

For the upcoming trading day on Thursday, 25th we expect ARCA biopharma to open at $3.65, and during the day (based on 14 day Average True Range), to move between $3.43 and $3.83, which gives a possible trading interval of +/-$0.201 (+/-5.53%) up or down from last closing price. If ARCA biopharma takes out the full calculated possible swing range there will be an estimated 11.07% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $3.65 (0.55%) than the support at $3.40 (6.34%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is ARCA biopharma stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for ARCA biopharma stock to perform well in the short-term. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Buy candidate.

Current score: 3.889 Buy Candidate Downgraded

Predicted Opening Price for ARCA biopharma of Thursday, April 25, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.