Watsco Inc Stock Forecast

Stronger technical forecast for Watsco Inc stock price after Friday trading.
(Updated on May 10, 2024)

WSO Signals & Forecast

Mostly positive signals in the chart today. The Watsco Inc 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 $468.71 and $436.34. 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 20.74%. 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 is rising along with the price. This is considered to be a good technical signal. 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 Watsco Inc stock

On the downside, the stock finds support just below today's level from accumulated volume at $440.60 and $404.20. 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, Watsco Inc finds support just below today's level at $440.60. If this is broken, then the next support from accumulated volume will be at $404.20 and $384.17.

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 $6.91 between high and low, or 1.46%. For the last week, the stock has had daily average volatility of 1.79%.

The Watsco Inc stock is extremely overbought on RSI14 (94). Normally this may 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 stop-loss: $464.31 (-3.12%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 94 and this increases the risk substantially. There is a buy signal from a pivot bottom found 15 days ago.)

Trading Expectations (WSO) For The Upcoming Trading Day Of Monday 13th

For the upcoming trading day on Monday, 13th we expect Watsco Inc to open at $477.14, and during the day (based on 14 day Average True Range), to move between $468.70 and $489.82, which gives a possible trading interval of +/-$10.56 (+/-2.20%) up or down from last closing price. If Watsco Inc takes out the full calculated possible swing range there will be an estimated 4.41% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $440.60, some $38.66 (8.07%) from the current price of $479.26, our system finds the risk reward attractive.

Is Watsco Inc stock A Buy?

Watsco Inc holds several positive signals and has broken the strong rising trend up. As the stock is also in great technical shape we, therefore, consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 5.250 Strong Buy Candidate Upgraded

Predicted Opening Price for Watsco Inc of Monday, May 13, 2024

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