Castle Biosciences, 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
Castle Biosciences, Inc. stock downgraded from Buy Candidate to Hold/Accumulate after Tuesday trading session.
(Updated on May 07, 2024)
The Castle Biosciences, Inc. stock price fell by -2.52% on the last day (Tuesday, 7th May 2024) from $24.41 to $23.80. During the last trading day the stock fluctuated 3.63% from a day low at $23.70 to a day high of $24.56. The price has risen in 6 of the last 10 days and is up by 18.62% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -110 thousand shares and in total, 319 thousand shares were bought and sold for approximately $7.58 million.
The stock lies the upper part of a very 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 $24.36 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 -10.25% during the next 3 months and, with a 90% probability hold a price between $14.29 and $21.87 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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CSTL Signals & Forecast
The Castle Biosciences, 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 $22.86 and $20.96. A breakdown below any of these levels will issue sell signals. 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. A sell signal was issued from a pivot top point on Monday, May 06, 2024, and so far it has fallen -2.52%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss for Castle Biosciences, Inc. stock
On the downside, the stock finds support just below today's level from accumulated volume at $22.31 and $19.94. 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, Castle Biosciences, Inc. finds support just below today's level at $22.31. If this is broken, then the next support from accumulated volume will be at $19.94 and $18.06.
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 $0.86 between high and low, or 3.63%. For the last week, the stock has had daily average volatility of 6.83%.
The Castle Biosciences, Inc. 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: $22.76 (-4.36%) (This stock has high daily movements and this gives high risk. The RSI14 is 80 and this increases the risk substantially. There is a sell signal from a pivot top found 1 day ago.)
Trading Expectations (CSTL) For The Upcoming Trading Day Of Wednesday 8th
For the upcoming trading day on Wednesday, 8th we expect Castle Biosciences, Inc. to open at $24.02, and during the day (based on 14 day Average True Range), to move between $22.68 and $24.91, which gives a possible trading interval of +/-$1.12 (+/-4.70%) up or down from last closing price. If Castle Biosciences, Inc. takes out the full calculated possible swing range there will be an estimated 9.41% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $24.33 (2.25%) than the support at $22.31 (6.24%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Castle Biosciences, Inc. stock A Buy?
Castle Biosciences, 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: -0.825 Hold/Accumulate Downgraded
Predicted Opening Price for Castle Biosciences, Inc. of Wednesday, May 8, 2024
| Fair opening price May 8, 2024 | Current price |
|---|---|
| $24.02 ( 0.94%) | $23.80 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for CSTL
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 24.88 | 4.55 % | |
| R2 | 24.55 | 3.17 % | ||
| R1 | 24.35 | 2.32 % | ||
| Current price: | 23.80 | |||
| Support | S1 | 23.69 | -0.442 % | |
| S2 | 23.49 | -1.30 % | ||
| S3 | 23.16 | -2.68 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 25.09 | 5.44 % | |
| R2 | 24.41 | 2.58 % | ||
| R1 | 24.33 | 2.25 % | ||
| Current price | 23.80 | |||
| Support | S1 | 22.31 | -6.24% | |
| S2 | 19.94 | -16.20% | ||
| S3 | 18.06 | -24.10% |
FAQ
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