Cumberland Pharmaceuticals Inc. 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
Is Cumberland Pharmaceuticals Inc. stock still a buy after falling -11.25% on Wednesday?
(Updated on May 01, 2024)
The Cumberland Pharmaceuticals Inc. stock price fell by -11.25% on the last day (Wednesday, 1st May 2024) from $1.60 to $1.42. It has now fallen 3 days in a row. During the last trading day the stock fluctuated 9.86% from a day low at $1.42 to a day high of $1.56. The price has been going up and down for this period, and there has been a -9.55% loss for the last 2 weeks. Volume has increased on the last day by 99 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, 28 thousand shares were bought and sold for approximately $40.17 thousand.
The stock has broken the wide and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point ($1.43) are considered to be a "second chance" to get out. According to the fan-theory $1.11 will represent the new bottom line of the next trend, but it is far too early to say this for certain.
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CPIX Signals & Forecast
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. The Cumberland Pharmaceuticals Inc. stock 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 $1.63 and $1.70. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Friday, April 26, 2024, and so far it has fallen -19.32%. Further fall is indicated until a new bottom pivot has been found. Cumberland Pharmaceuticals Inc. 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 Cumberland Pharmaceuticals Inc. stock
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.140 between high and low, or 9.86%. For the last week, the stock has had daily average volatility of 9.77%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (CPIX) For The Upcoming Trading Day Of Thursday 2nd
For the upcoming trading day on Thursday, 2nd we expect Cumberland Pharmaceuticals Inc. to open at $1.47, and during the day (based on 14 day Average True Range), to move between $1.30 and $1.54, which gives a possible trading interval of +/-$0.121 (+/-8.55%) up or down from last closing price. If Cumberland Pharmaceuticals Inc. takes out the full calculated possible swing range there will be an estimated 17.10% move between the lowest and the highest trading price during the day.
With no support below and resistance from accumulated volume @ $1.60, some $0.180 (12.68%) from the current price of $1.42, our system finds the risk reward not very attractive.
Is Cumberland Pharmaceuticals Inc. stock A Buy?
Cumberland Pharmaceuticals Inc. holds several negative signals and is within a wide 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 stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Strong Sell candidate.
Current score: -6.803 Strong Sell Candidate Downgraded
Predicted Opening Price for Cumberland Pharmaceuticals Inc. of Thursday, May 2, 2024
| Fair opening price May 2, 2024 | Current price |
|---|---|
| $1.47 ( 3.29%) | $1.42 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for CPIX
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 1.61 | 13.15 % | |
| R2 | 1.55 | 9.38 % | ||
| R1 | 1.52 | 7.05 % | ||
| Current price: | 1.42 | |||
| Support | S1 | 1.41 | -0.480 % | |
| S2 | 1.38 | -2.81 % | ||
| S3 | 1.33 | -6.57 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 1.71 | 20.42 % | |
| R2 | 1.69 | 18.70 % | ||
| R1 | 1.60 | 12.68 % | ||
| Current price | 1.42 | |||
| Support | S1 | 0 | . | |
| S2 | 0 | . | ||
| S3 | 0 | . |
FAQ
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