Canadian Western Bank (Edmonton, AB) Stock Forecast

Canadian Western Bank (Edmonton, AB) stock downgraded to Hold/Accumulate
(Updated on Jun 25, 2024)

CBWBF Signals & Forecast

The Canadian Western Bank (Edmonton, AB) 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 $30.68 and $22.18. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, June 10, 2024, and so far it has risen 70.91%. 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). Canadian Western Bank (Edmonton, AB) 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.

Support, Risk & Stop-loss for Canadian Western Bank (Edmonton, AB) stock

Canadian Western Bank (Edmonton, AB) finds support from accumulated volume at $30.64 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $0 between high and low, or 0%. For the last week, the stock has had daily average volatility of 0.0776%.

The Canadian Western Bank (Edmonton, AB) 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: $30.44 (-3.14%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 93 and this increases the risk substantially. There is a buy signal from a pivot bottom found 23 days ago.)

Trading Expectations (CBWBF) For The Upcoming Trading Day Of Wednesday 26th

For the upcoming trading day on Wednesday, 26th we expect Canadian Western Bank (Edmonton, AB) to open at $31.43, and during the day (based on 14 day Average True Range), to move between $30.61 and $32.25, which gives a possible trading interval of +/-$0.82 (+/-2.61%) up or down from last closing price. If Canadian Western Bank (Edmonton, AB) takes out the full calculated possible swing range there will be an estimated 5.21% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $30.64, some $0.790 (2.51%) from the current price of $31.43, our system finds the risk reward attractive.

Is Canadian Western Bank (Edmonton, AB) stock A Buy?

Canadian Western Bank (Edmonton, AB) 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 Canadian Western Bank (Edmonton, AB) of Wednesday, June 26, 2024

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