ScanSource Stock Forecast
ScanSource stock price up 1.70% on Thursday
(Updated on May 09, 2024)
The ScanSource stock price gained 1.70% on the last trading day (Thursday, 9th May 2024), rising from $46.59 to $47.38. It has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 2.73% from a day low at $46.94 to a day high of $48.22. The price has risen in 8 of the last 10 days and is up by 13.08% over the past 2 weeks. Volume fell on the last day by -226 thousand shares and in total, 259 thousand shares were bought and sold for approximately $12.28 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 has broken the wide and horizontal trend up. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately. $44.82 is considered to be a "second chance" to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach $49.38 sometime during the next 3 months.
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SCSC Signals & Forecast
The ScanSource 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 $44.23 and $42.46. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, May 01, 2024, and so far it has risen 14.25%. 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 ScanSource stock
ScanSource finds support from accumulated volume at $46.59 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 $1.28 between high and low, or 2.73%. For the last week, the stock has had daily average volatility of 7.05%.
Since the ScanSource has been rising for 6 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.
Our recommended stop-loss: $45.94 (-3.04%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 6 days ago.)
Trading Expectations (SCSC) For The Upcoming Trading Day Of Friday 10th
For the upcoming trading day on Friday, 10th we expect ScanSource to open at $47.51, and during the day (based on 14 day Average True Range), to move between $45.68 and $49.08, which gives a possible trading interval of +/-$1.70 (+/-3.58%) up or down from last closing price. If ScanSource takes out the full calculated possible swing range there will be an estimated 7.16% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $46.59, some $0.790 (1.67%) from the current price of $47.38, our system finds the risk reward attractive.
Is ScanSource stock A Buy?
ScanSource 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 ScanSource of Friday, May 10, 2024
| Fair opening price May 10, 2024 | Current price |
|---|---|
| $47.51 ( 0.283%) | $47.38 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for SCSC
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 48.80 | 2.99 % | |
| R2 | 48.31 | 1.96 % | ||
| R1 | 48.00 | 1.32 % | ||
| Current price: | 47.38 | |||
| Support | S1 | 47.02 | -0.751 % | |
| S2 | 46.72 | -1.39 % | ||
| S3 | 46.23 | -2.42 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 47.38 | |||
| Support | S1 | 46.59 | -1.67% | |
| S2 | 42.55 | -10.19% | ||
| S3 | 41.90 | -11.57% |
FAQ
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