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:

Bollinger Bottleneck Buy Pattern 1
Bollinger Bottleneck Buy Pattern 2
Bollinger Bottleneck Sell Pattern

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

RSI low/high Values: [ 25 - 80 ]
* StockInvest.us uses dynamically calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behavior.
AI Analysis of CHEK
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Volatile ride for Check-Cap Ltd. stock price on Wednesday moving between $2.24 and $2.84
(Updated on Mar 27, 2024)

Hold candidate since Mar 26, 2024 Gain 11.34% PDF

The Check-Cap Ltd. stock price gained 11.34% on the last trading day (Wednesday, 27th Mar 2024), rising from $2.47 to $2.75. During the last trading day the stock fluctuated 26.56% from a day low at $2.24 to a day high of $2.84. The price has been going up and down for this period, and there has been a 36.73% gain for the last 2 weeks. Volume fell on the last day by -12 million shares and in total, 655 thousand shares were bought and sold for approximately $1.80 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

Given the current short-term trend, the stock is expected to fall -2.01% during the next 3 months and, with a 90% probability hold a price between $1.82 and $2.69 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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CHEK Signals & Forecast

The Check-Cap Ltd. 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 $2.16 and $2.11. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, March 19, 2024, and so far it has risen 47.83%. 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 Check-Cap Ltd. stock

On the downside, the stock finds support just below today's level from accumulated volume at $2.47 and $2.17. 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, Check-Cap Ltd. finds support just below today's level at $2.47. If this is broken, then the next support from accumulated volume will be at $2.17 and $2.14.

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 $0.595 between high and low, or 26.56%. For the last week, the stock has had daily average volatility of 14.22%.

The Check-Cap Ltd. 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: $2.67 (-2.88%) (This stock has high daily movements and this gives high risk. The RSI14 is 81 and this increases the risk substantially. There is a buy signal from a pivot bottom found 6 days ago.)

Trading Expectations (CHEK) For The Upcoming Trading Day Of Thursday 28th

For the upcoming trading day on Thursday, 28th we expect Check-Cap Ltd. to open at $2.61, and during the day (based on 14 day Average True Range), to move between $2.55 and $2.95, which gives a possible trading interval of +/-$0.202 (+/-7.33%) up or down from last closing price. If Check-Cap Ltd. takes out the full calculated possible swing range there will be an estimated 14.66% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $2.47, some $0.280 (10.18%) from the current price of $2.75, our system finds the risk reward attractive.

Is Check-Cap Ltd. stock A Buy?

Check-Cap Ltd. 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.

Current score: 0.000 Hold/Accumulate Unchanged

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 Check-Cap Ltd. of Thursday, March 28, 2024

Fair opening price March 28, 2024 Current price
$2.61 ( 5.15%) $2.75

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

Trading levels for CHEK

Fibonacci Support & Resistance Levels

Level Price
Resistance R3 3.20 16.48 %
R2 2.98 8.22 %
R1 2.84 3.11 %
Current price: 2.75
Support S1 2.38 -13.42 %
S2 2.24 -18.52 %
S3 2.01 -26.79 %

Accumulated Volume Support & Resistance Levels

Level Price
Resistance R3 0 .
R2 0 .
R1 0 .
Current price 2.75
Support S1 2.47 -10.18%
S2 2.17 -21.09%
S3 2.14 -22.18%

FAQ

What is the symbol for Check-Cap Ltd. Stock and on which exchange is it traded?
The symbol for Check-Cap Ltd. is CHEK and it is traded on the NASDAQ (NASDAQ Stock Exchange).

Should I buy or sell Check-Cap Ltd. Stock?
Check-Cap Ltd. 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.

How to buy Check-Cap Ltd. Stock?
Check-Cap Ltd. Stock can be purchased through just about any brokerage firm, including online brokerage services.
Click here for our free guide on how to buy Check-Cap Ltd. Stock.

What's the current price of Check-Cap Ltd. Stock?
As of the end of day on the 2024-03-27, the price of an Check-Cap Ltd. (CHEK) share was $2.75.

What is the 52-week high and low for Check-Cap Ltd. Stock?
The 52-week high for Check-Cap Ltd. Stock is $4.63 and the 52-week low is $1.25.

What is the market capitalization of Check-Cap Ltd. Stock?
As of the 2024-03-27, the market capitalization of Check-Cap Ltd. is 14.45M.

When is the next earnings date for Check-Cap Ltd.?
The upcoming earnings date for Check-Cap Ltd. is Mar 29, 2024.
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