Evaluation of CSP Inc. stock downgraded after the last trading session.
(Updated on Nov 26, 2021)

The CSP Inc. stock price gained 2.61% on the last trading day (Friday, 26th Nov 2021), rising from $8.80 to $9.03. , and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the day the stock fluctuated 4.39% from a day low at $8.65 to a day high of $9.03. The price has fallen in 6 of the last 10 days, but is still up by 4.03% over the past 2 weeks. Volume fell on the last day by -690 shares and in total, 7 thousand shares were bought and sold for approximately $63.22 thousand. 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.

The stock lies the upper part of a wide 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 $9.23 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -5.35% during the next 3 months and, with a 90% probability hold a price between $7.75 and $8.73 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.

Signals & Forecast

The CSP Inc. 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 $8.80 and $8.73. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, November 19, 2021, and so far it has risen 4.88%. 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). Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may not be. The very low volume increases the risk and reduces the other technical signals issued.

Buy

Special Signal Notification

Double Bottom Formation

A buy signal from a double bottom formation was found on Thursday, October 28, 2021 and based on theory for this formation the price should go up by 2.35% to $9.24 within 19 trading days since signal was issued (Wednesday, November 24, 2021).

Support, Risk & Stop-loss

CSP Inc. finds support from accumulated volume at $8.93 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have controlled movements and therefore the general risk is considered low. However, be aware of low or falling volume and make sure to keep an eye on the stock. During the last day, the stock moved $0.38 between high and low, or 4.39%. For the last week the stock has had a daily average volatility of 4.16%.

Our recommended stop-loss: $8.69 (-3.80%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 4 days ago.)

Is CSP Inc. stock A Buy?

CSP Inc. 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: 0.961

Remember To Visit Our YouTube Channel