Cummins Inc Stock Forecast

Cummins Inc stock upgraded from Sell Candidate to Hold/Accumulate after Friday trading session.
(Updated on May 03, 2024)

CMI Signals & Forecast

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. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Cummins Inc 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 $286.26 and $291.61. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, April 11, 2024, and so far it has fallen -7.30%. 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).

Support, Risk & Stop-loss for Cummins Inc stock

Cummins Inc finds support from accumulated volume at $270.15 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $6.01 (2.18%) between high and low. For the last week, the stock has had daily average volatility of 2.58%.

Our recommended stop-loss: $268.04 (-4.52%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 16 days ago.)

Trading Expectations (CMI) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect Cummins Inc to open at $279.46, and during the day (based on 14 day Average True Range), to move between $274.41 and $287.07, which gives a possible trading interval of +/-$6.33 (+/-2.26%) up or down from last closing price. If Cummins Inc takes out the full calculated possible swing range there will be an estimated 4.51% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $286.12 (1.92%) than the support at $270.15 (3.77%), 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 Cummins Inc stock A Buy?

Cummins Inc holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.

Current score: -0.847 Hold/Accumulate Upgraded

Predicted Opening Price for Cummins Inc of Monday, May 6, 2024

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