American Water Works Stock Forecast

American Water Works stock upgraded from Hold/Accumulate to Buy Candidate after Thursday trading session.
(Updated on May 02, 2024)

AWK Signals & Forecast

Mostly positive signals in the chart today. The American Water Works 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 $122.77 and $119.30. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 10.66%. 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 American Water Works stock

American Water Works finds support from accumulated volume at $121.73 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $3.68 (3.01%) between high and low. For the last week, the stock has had daily average volatility of 1.95%.

The American Water Works 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 and the RSI is still moving upwards. 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: $121.90 (-3.21%) (This stock has low daily movements and this gives low risk. The RSI14 is 79 and this increases the risk substantially. There is a buy signal from a pivot bottom found 12 days ago.)

Trading Expectations (AWK) For The Upcoming Trading Day Of Friday 3rd

For the upcoming trading day on Friday, 3rd we expect American Water Works to open at $124.81, and during the day (based on 14 day Average True Range), to move between $123.48 and $128.42, which gives a possible trading interval of +/-$2.47 (+/-1.96%) up or down from last closing price. If American Water Works takes out the full calculated possible swing range there will be an estimated 3.93% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $121.73, some $4.22 (3.35%) from the current price of $125.95, our system finds the risk reward attractive.

Is American Water Works stock A Buy?

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for American Water Works stock to perform well in the short-term period. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.

Current score: 3.009 Buy Candidate Upgraded

Predicted Opening Price for American Water Works of Friday, May 3, 2024

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