BRL/PEN 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
BRL/PEN currency pair downgraded to Strong Sell Candidate
(Updated on May 30, 2024)
The BRL/PEN currency pair price fell by -0.495% on the last day (Thursday, 30th May 2024) from $0.727 to $0.723. During the last trading day the currency pair fluctuated 0.610% from a day low at $0.721 to a day high of $0.726. The price has fallen in 6 of the last 10 days and is down by -1.19% for this period. Volume has increased on the last day by 6 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, 9 shares were bought and sold for approximately $6.51 .
The currency pair lies the upper part of a narrow and falling trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at $0.729 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the currency pair is expected to fall -3.51% during the next 3 months and, with a 90% probability hold a price between $0.672 and $0.703 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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BRLPEN Signals & Forecast
There are few to no technical positive signals at the moment. The BRL/PEN 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 $0.723 and $0.724. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Friday, May 03, 2024, and so far it has fallen -1.89%. 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). BRL/PEN gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for BRL/PEN currency pair
BRL/PEN finds support from accumulated volume at $0.721 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the currency pair tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the currency pair moved $0.0044 between high and low, or 0.610%. For the last week the currency pair has had daily average volatility of 0.255%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (BRLPEN) For The Upcoming Trading Day Of Friday 31st
For the upcoming trading day on Friday, 31st we expect BRL/PEN to open at $0.724, and during the day (based on 14 day Average True Range), to move between $0.715 and $0.732, which gives a possible trading interval of +/-$0.0087 (+/-1.20%) up or down from last closing price. If BRL/PEN takes out the full calculated possible swing range there will be an estimated 2.40% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $0.724 (0.12%) than the support at $0.721 (0.37%), 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 BRL/PEN currency pair A Buy?
BRL/PEN 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. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this currency pair since the last evaluation from a Hold/Accumulate to a Strong Sell candidate.
Current score: -5.088 Strong Sell Candidate Downgraded
Predicted Opening Price for BRL/PEN of Friday, May 31, 2024
| Fair opening price May 31, 2024 | Current price |
|---|---|
| $0.724 ( 0.0277%) | $0.723 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for BRLPEN
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.728 | 0.636 % | |
| R2 | 0.726 | 0.404 % | ||
| R1 | 0.725 | 0.260 % | ||
| Current price: | 0.723 | |||
| Support | S1 | 0.722 | -0.205 % | |
| S2 | 0.721 | -0.348 % | ||
| S3 | 0.719 | -0.581 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.741 | 2.50 % | |
| R2 | 0.725 | 0.194 % | ||
| R1 | 0.724 | 0.124 % | ||
| Current price | 0.723 | |||
| Support | S1 | 0.721 | -0.373% | |
| S2 | 0.718 | -0.760% | ||
| S3 | 0.716 | -1.04% |
FAQ
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