ARS/ZAR Currency Pair 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
Stronger technical forecast for ARS/ZAR currency pair price after Friday trading.
(Updated on May 17, 2024)
The ARS/ZAR currency pair price fell by -0.167% on the last day (Friday, 17th May 2024) from R 0.0205 to R 0.0205. It has now fallen 3 days in a row. During the last trading day the currency pair fluctuated 0.85% from a day low at R 0.0205 to a day high of R 0.0206. The price has fallen in 7 of the last 10 days and is down by -2.8% for this period. Volume fell on the last day along with the currency pair, which is actually a good sign as volume should follow the currency pair. On the last day, the trading volume fell by -356 shares and in total, 2 thousand shares were bought and sold for approximately R 50.23 .
The currency pair lies in the lower of a narrow and falling trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at R 0.0205 is broken, it will firstly indicate a stronger fall rate. Given the current short-term trend, the currency pair is expected to fall -8.31% during the next 3 months and, with a 90% probability hold a price between R 0.0188 and R 0.0197 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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ARSZAR Signals & Forecast
There are few to no technical positive signals at the moment. The ARS/ZAR currency pair 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 R 0.0207 and R 0.0214. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Wednesday, April 24, 2024, and so far it has fallen -7.02%. 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). Volume fell along with the price during the last trading day which is technical positive. One should, however, note that this currency pair may have low liquidity in periods, which increases the general risk. The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for ARS/ZAR currency pair
There is no support from accumulated volume below today's level and given the right condition the currency pair may perform very badly in the next couple of days.
In general the currency pair tends to have controlled movements and therefore the general risk is considered low. However, be aware of low or falling volume and make sure to keep an eye on the currency pair. During the last day, the currency pair moved R 0.0002 between high and low, or 0.85%. For the last week the currency pair has had daily average volatility of 1.01%.
ARS/ZAR is oversold on RSI14 (21). Some currency pairs 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 (ARSZAR) For The Upcoming Trading Day Of Monday 20th
For the upcoming trading day on Monday, 20th we expect ARS/ZAR to open at R 0.0205, and during the day (based on 14 day Average True Range), to move between R 0.0203 and R 0.0207, which gives a possible trading interval of +/-R 0.0002 (+/-1.07%) up or down from last closing price. If ARS/ZAR takes out the full calculated possible swing range there will be an estimated 2.15% move between the lowest and the highest trading price during the day.
With no support below and resistance from accumulated volume @ R 0.0219, some R 0.0014 (6.94%) from the current price of R 0.0205, our system finds the risk reward not very attractive.
Is ARS/ZAR currency pair A Buy?
ARS/ZAR holds several negative signals and is within a narrow 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 currency pair. We have upgraded our analysis conclusion for this currency pair since the last evaluation from a Strong Sell to a Sell candidate.
Current score: -2.915 Sell Candidate Upgraded
Predicted Opening Price for ARS/ZAR of Monday, May 20, 2024
| Fair opening price May 20, 2024 | Current price |
|---|---|
| R 0.0205 ( 0.260%) | R 0.0205 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ARSZAR
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.0207 | 1.11 % | |
| R2 | 0.0206 | 0.787 % | ||
| R1 | 0.0206 | 0.585 % | ||
| Current price: | 0.0205 | |||
| Support | S1 | 0.0205 | -0.0658 % | |
| S2 | 0.0204 | -0.267 % | ||
| S3 | 0.0204 | -0.593 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.0228 | 11.23 % | |
| R2 | 0.0219 | 7.03 % | ||
| R1 | 0.0219 | 6.94 % | ||
| Current price | 0.0205 | |||
| Support | S1 | 0 | . | |
| S2 | 0 | . | ||
| S3 | 0 | . |
FAQ
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