Builders FirstSource stock upgraded to Buy Candidate.
(Updated on Nov 26, 2021)

The Builders FirstSource stock price fell by -3.09% on the last day (Friday, 26th Nov 2021) from $73.71 to $71.43. During the day the stock fluctuated 2.59% from a day low at $70.93 to a day high of $72.77. The price has risen in 7 of the last 10 days and is up by 5.88% over the past 2 weeks. Volume has increased on the last day by 371 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 2 million shares were bought and sold for approximately $156.95 million.

The stock lies in the middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 35.99% during the next 3 months and, with a 90% probability hold a price between $86.34 and $100.66 at the end of this 3-month period.

Signals & Forecast

The Builders FirstSource 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 $71.57. On a fall, the stock will find some support from the long-term average at approximately $62.94. 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). 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 Wednesday, November 24, 2021, and so far it has fallen -3.09%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

Support, Risk & Stop-loss

On the downside, the stock finds support just below today's level from accumulated volume at $67.24 and $65.40. There is 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, Builders FirstSource finds support just below today's level at $67.24. If this is broken, then the next support from accumulated volume will be at $65.40 and $60.26.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $1.84 between high and low, or 2.59%. For the last week, the stock has had a daily average volatility of 2.86%.

Our recommended stop-loss: $68.65 (-3.90%) (This stock has high daily movements and this gives high risk. There is a sell signal from a pivot top found 1 days ago.)

Is Builders FirstSource stock A Buy?

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

Current score: 2.752

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