Ambarella Stock Forecast
Evaluation of Ambarella stock downgraded after the last trading session.
(Updated on Apr 17, 2024)
The Ambarella stock price fell by -1.87% on the last day (Wednesday, 17th Apr 2024) from $44.49 to $43.66. It has now fallen 4 days in a row. During the last trading day the stock fluctuated 4.49% from a day low at $43.23 to a day high of $45.17. The price has fallen in 7 of the last 10 days and is down by -12.06% 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 -419 thousand shares and in total, 487 thousand shares were bought and sold for approximately $21.27 million.
The stock has broken the wide and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point ($44.24) are considered to be a "second chance" to get out. According to the fan-theory $34.79 will represent the new bottom line of the next trend, but it is far too early to say this for certain.
Ready to grow your portfolio? Here's your beginner's guide to opening a free brokerage account.
AMBA Signals & Forecast
Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. The Ambarella 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 $46.50 and $51.14. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, April 09, 2024, and so far it has fallen -13.06%. Further fall is indicated 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.
A sell signal from a double top formation was found on Thursday, March 07, 2024 with a target of $54.72. Despite whether the objective of the signal formation has been reached the stock may continue to fall.
Support, Risk & Stop-loss for Ambarella 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 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 $1.94 between high and low, or 4.49%. For the last week, the stock has had daily average volatility of 2.89%.
Ambarella is oversold on RSI14 (23). 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 (AMBA) For The Upcoming Trading Day Of Thursday 18th
For the upcoming trading day on Thursday, 18th we expect Ambarella to open at $44.02, and during the day (based on 14 day Average True Range), to move between $41.81 and $45.51, which gives a possible trading interval of +/-$1.85 (+/-4.24%) up or down from last closing price. If Ambarella takes out the full calculated possible swing range there will be an estimated 8.47% move between the lowest and the highest trading price during the day.
With no support below and resistance from accumulated volume @ $44.49, some $0.83 (1.90%) from the current price of $43.66, our system finds the risk reward not very attractive.
Is Ambarella stock A Buy?
Ambarella holds several negative signals and is within a wide and 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 Sell to a Strong Sell candidate.
Current score: -5.802 Strong Sell Candidate Downgraded
Predicted Opening Price for Ambarella of Thursday, April 18, 2024
| Fair opening price April 18, 2024 | Current price |
|---|---|
| $44.02 ( 0.82%) | $43.66 |
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 | 45.96 | 5.27 % | |
| R2 | 45.22 | 3.57 % | ||
| R1 | 44.76 | 2.52 % | ||
| Current price: | 43.66 | |||
| Support | S1 | 43.28 | -0.87 % | |
| S2 | 42.82 | -1.92 % | ||
| S3 | 42.08 | -3.62 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 49.15 | 12.57 % | |
| R2 | 47.75 | 9.37 % | ||
| R1 | 44.49 | 1.90 % | ||
| Current price | 43.66 | |||
| Support | S1 | 0 | . | |
| S2 | 0 | . | ||
| S3 | 0 | . |
FAQ
Click here for our free guide on how to buy Ambarella Stock.
