AMERICAN WATER WKS Stock Forecast

Evaluation of AMERICAN WATER WKS stock downgraded after the last trading session.
(Updated on May 17, 2024)

AWC.DE Signals & Forecast

The AMERICAN WATER WKS stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately 123.69€. On a fall, the stock will find some support from the long-term average at approximately 114.72€. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). AMERICAN WATER WKS 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. The very low volume increases the risk and reduces the other technical signals issued. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Friday, May 10, 2024, and so far it has fallen -1.36%. Further fall is indicated until a new bottom pivot has been found.

Support, Risk & Stop-loss for AMERICAN WATER WKS stock

On the downside, the stock finds support just below today's level from accumulated volume at 111.65€ and 109.00€. 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, AMERICAN WATER WKS finds support just below today's level at 111.65€. If this is broken, then the next support from accumulated volume will be at 109.00€ and 108.40€.

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 1.35€ between high and low, or 1.10%. For the last week, the stock has had daily average volatility of 1.10%.

The AMERICAN WATER WKS 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: 118.68€ (-3.75%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 83 and this increases the risk substantially. There is a sell signal from a pivot top found 5 days ago.)

Trading Expectations (AWC.DE) For The Upcoming Trading Day Of Monday 20th

For the upcoming trading day on Monday, 20th we expect AMERICAN WATER WKS to open at 123.48€, and during the day (based on 14 day Average True Range), to move between 121.70€ and 124.90€, which gives a possible trading interval of +/-1.60€ (+/-1.30%) up or down from last closing price. If AMERICAN WATER WKS takes out the full calculated possible swing range there will be an estimated 2.60% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at 124.15€ (0.69%) than the support at 111.65€ (9.45%), 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 AMERICAN WATER WKS stock A Buy?

AMERICAN WATER WKS 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: 0.751 Hold/Accumulate Downgraded

Predicted Opening Price for AMERICAN WATER WKS of Monday, May 20, 2024

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