Reckitt Benckiser Group plc Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Reckitt Benckiser Group plc stock downgraded from Buy Candidate to Hold/Accumulate after Tuesday trading session.
(Updated on May 07, 2024)
The Reckitt Benckiser Group plc stock price gained 1.64% on the last trading day (Tuesday, 7th May 2024), rising from 52.32€ to 53.18€. During the last trading day the stock fluctuated 1.64% from a day low at 52.58€ to a day high of 53.44€. The price has risen in 8 of the last 10 days and is up by 7.07% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 1 thousand more shares were traded than the day before. In total, 10 thousand shares were bought and sold for approximately 549.35€ thousand.
Given the current short-term trend, the stock is expected to fall -28.50% during the next 3 months and, with a 90% probability hold a price between 30.89€ and 38.02€ at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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3RB.DE Signals & Forecast
The Reckitt Benckiser Group plc 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 52.38€ and 50.79€. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, April 15, 2024, and so far it has risen 9.65%. 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). Reckitt Benckiser Group plc has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.
Support, Risk & Stop-loss for Reckitt Benckiser Group plc stock
Reckitt Benckiser Group plc finds support from accumulated volume at 52.12€ 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 0.86€ between high and low, or 1.64%. For the last week, the stock has had daily average volatility of 1.51%.
The Reckitt Benckiser Group plc 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: 50.93€ (-4.24%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 90 and this increases the risk substantially. There is a buy signal from a pivot bottom found 15 days ago.)
Trading Expectations (3RB.DE) For The Upcoming Trading Day Of Wednesday 8th
For the upcoming trading day on Wednesday, 8th we expect Reckitt Benckiser Group plc to open at 53.07€, and during the day (based on 14 day Average True Range), to move between 52.08€ and 54.28€, which gives a possible trading interval of +/-1.10€ (+/-2.07%) up or down from last closing price. If Reckitt Benckiser Group plc takes out the full calculated possible swing range there will be an estimated 4.15% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at 53.30€ (0.23%) than the support at 52.12€ (1.99%), 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 Reckitt Benckiser Group plc stock A Buy?
Reckitt Benckiser Group plc 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. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.000 Hold/Accumulate Downgraded
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 Reckitt Benckiser Group plc of Wednesday, May 8, 2024
Fair opening price May 8, 2024 | Current price |
---|---|
53.07€ ( 0.213%) | 53.18€ |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for 3RB.DE
Fibonacci Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 53.93 | 1.40 % | |
R2 | 53.60 | 0.786 % | ||
R1 | 53.40 | 0.405 % | ||
Current price: | 53.18 | |||
Support | S1 | 52.74 | -0.83 % | |
S2 | 52.54 | -1.21 % | ||
S3 | 52.21 | -1.83 % |
Accumulated Volume Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 59.96 | 12.75 % | |
R2 | 58.94 | 10.83 % | ||
R1 | 53.30 | 0.226 % | ||
Current price | 53.18 | |||
Support | S1 | 52.12 | -1.99% | |
S2 | 50.26 | -5.49% | ||
S3 | 49.54 | -6.84% |
3RB Dividend Payout History
# | Ex-Date | Pay Date | Amount | Yield | |
---|---|---|---|---|---|
1 | Apr 11, 2024 | Apr 11, 2024 | May 24, 2024 | 1.35€ | 2.54% |
2 | Aug 03, 2023 | Aug 03, 2023 | Aug 03, 2023 | 0.766€ | 1.13% |
3 | Apr 06, 2023 | Apr 06, 2023 | Apr 06, 2023 | 1.10€ | 1.54% |
4 | Aug 04, 2022 | Aug 04, 2022 | Aug 04, 2022 | 0.730€ | 0.91% |
5 | Apr 28, 2022 | Apr 28, 2022 | Apr 28, 2022 | 1.02€ | 1.37% |
FAQ
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