Canara Bank Stock 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
Canara Bank stock downgraded from Buy Candidate to Hold/Accumulate after Thursday trading session.
(Updated on May 02, 2024)
The Canara Bank stock price gained 1.07% on the last trading day (Thursday, 2nd May 2024), rising from ₹621.95 to ₹628.60. During the last trading day the stock fluctuated 1.28% from a day low at ₹623.05 to a day high of ₹631.00. The price has risen in 7 of the last 10 days and is up by 7.74% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 4 million more shares were traded than the day before. In total, 4 million shares were bought and sold for approximately ₹2.71 billion.
The stock lies in the upper part of a wide and strong rising 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 ₹641.91 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 10.55% during the next 3 months and, with a 90% probability hold a price between ₹630.93 and ₹709.63 at the end of this 3-month period.
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CANBK.NS Signals & Forecast
The Canara Bank 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 ₹617.82 and ₹589.49. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, March 13, 2024, and so far it has risen 17.18%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
Support, Risk & Stop-loss for Canara Bank stock
On the downside, the stock finds support just below today's level from accumulated volume at ₹580.45 and ₹569.25. 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, Canara Bank finds support just below today's level at ₹580.45. If this is broken, then the next support from accumulated volume will be at ₹569.25 and ₹552.15.
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 ₹7.95 (1.28%) between high and low. For the last week, the stock has had daily average volatility of 1.28%.
Our recommended stop-loss: ₹604.96 (-3.76%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 33 days ago.)
Trading Expectations (CANBK.NS) For The Upcoming Trading Day Of Friday 3rd
For the upcoming trading day on Friday, 3rd we expect Canara Bank to open at ₹627.55, and during the day (based on 14 day Average True Range), to move between ₹615.35 and ₹641.85, which gives a possible trading interval of +/-₹13.25 (+/-2.11%) up or down from last closing price. If Canara Bank takes out the full calculated possible swing range there will be an estimated 4.21% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ ₹580.45, some ₹48.15 (7.66%) from the current price of ₹628.60, our system finds the risk reward attractive.
Earnings coming up
Canara Bank will release earnings BMO on Monday, May 06, 2024.The consensus among the analysts for the expected earnings (EPS) is $20.45. We will update the financials statements for Canara Bank, that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 4.08% in the first trading day after earnings release.
Is Canara Bank stock A Buy?
Canara Bank 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: 0.000 Hold/Accumulate Downgraded
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for Canara Bank of Friday, May 3, 2024
Fair opening price May 3, 2024 | Current price |
---|---|
₹627.55 ( 0.167%) | ₹628.60 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for CANBK.NS
Fibonacci Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 635.50 | 1.10 % | |
R2 | 632.46 | 0.615 % | ||
R1 | 630.59 | 0.316 % | ||
Current price: | 628.60 | |||
Support | S1 | 624.51 | -0.650 % | |
S2 | 622.64 | -0.95 % | ||
S3 | 619.60 | -1.43 % |
Accumulated Volume Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 0 | . | |
R2 | 0 | . | ||
R1 | 0 | . | ||
Current price | 628.60 | |||
Support | S1 | 580.45 | -7.66% | |
S2 | 569.25 | -9.44% | ||
S3 | 552.15 | -12.16% |
CANBK Dividend Payout History
# | Ex-Date | Pay Date | Amount | Yield | |
---|---|---|---|---|---|
1 | Jun 14, 2023 | Jun 14, 2023 | Jun 14, 2023 | ₹12.00 | 3.94% |
2 | Jun 15, 2022 | Jun 15, 2022 | Jun 15, 2022 | ₹6.50 | 3.45% |
3 | May 08, 2017 | Jul 12, 2017 | Aug 16, 2017 | ₹1.00 | 0.297% |
4 | May 25, 2015 | Jun 25, 2015 | Aug 13, 2015 | ₹10.21 | 3.64% |
5 | May 05, 2014 | Jul 03, 2014 | Aug 20, 2014 | ₹4.38 | 1.19% |
FAQ
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