Desktop Metal, 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
Evaluation of Desktop Metal, Inc. stock downgraded after the last trading session.
(Updated on May 02, 2024)
The Desktop Metal, Inc. stock price gained 1.41% on the last trading day (Thursday, 2nd May 2024), rising from $0.786 to $0.797. During the last trading day the stock fluctuated 5.74% from a day low at $0.761 to a day high of $0.80. The price has been going up and down for this period, and there has been a -3.7% loss for the last 2 weeks. Volume fell on the last day by -899 thousand shares and in total, 796 thousand shares were bought and sold for approximately $634.04 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 in the lower part of a very wide and strong rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $0.792 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 50.98% during the next 3 months and, with a 90% probability hold a price between $1.20 and $1.86 at the end of this 3-month period.
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DM Signals & Forecast
There are few to no technical positive signals at the moment. The Desktop Metal, 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 $0.82 and $0.84. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Wednesday, April 10, 2024, and so far it has fallen -28.87%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). 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 also not.
Support, Risk & Stop-loss for Desktop Metal, Inc. stock
On the downside, the stock finds support just below today's level from accumulated volume at $0.670 and $0.652. 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, Desktop Metal, Inc. finds support just below today's level at $0.670. If this is broken, then the next support from accumulated volume will be at $0.652 and $0.612.
This stock may move much during the day (volatility) and with periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved $0.0437 between high and low, or 5.74%. For the last week the stock has had daily average volatility of 7.81%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (DM) For The Upcoming Trading Day Of Friday 3rd
For the upcoming trading day on Friday, 3rd we expect Desktop Metal, Inc. to open at $0.787, and during the day (based on 14 day Average True Range), to move between $0.721 and $0.87, which gives a possible trading interval of +/-$0.0754 (+/-9.47%) up or down from last closing price. If Desktop Metal, Inc. takes out the full calculated possible swing range there will be an estimated 18.94% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $0.86 (7.81%) than the support at $0.670 (15.92%), 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.
Earnings coming up
Desktop Metal, Inc. will release earnings BMO on Thursday, May 09, 2024.The consensus among the analysts for the expected earnings (EPS) is -$0.0600. We will update the financials statements for Desktop Metal, Inc., that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 19.57% in the first trading day after earnings release.
Is Desktop Metal, Inc. stock A Buy?
The Desktop Metal, Inc. stock holds several negative signals and despite the positive trend, we believe Desktop Metal, Inc. will perform weakly in the next couple of days or weeks. Therefore, we 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 Hold/Accumulate to a Sell candidate.
Current score: -3.572 Sell Candidate Downgraded
Predicted Opening Price for Desktop Metal, Inc. of Friday, May 3, 2024
| Fair opening price May 3, 2024 | Current price |
|---|---|
| $0.787 ( 1.16%) | $0.797 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for DM
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.83 | 4.33 % | |
| R2 | 0.81 | 2.23 % | ||
| R1 | 0.80 | 0.94 % | ||
| Current price: | 0.797 | |||
| Support | S1 | 0.771 | -3.25 % | |
| S2 | 0.760 | -4.55 % | ||
| S3 | 0.744 | -6.64 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.97 | 22.34 % | |
| R2 | 0.96 | 20.03 % | ||
| R1 | 0.86 | 7.81 % | ||
| Current price | 0.797 | |||
| Support | S1 | 0.670 | -15.92% | |
| S2 | 0.652 | -18.16% | ||
| S3 | 0.612 | -23.22% |
DM Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Jan 03, 2019 | Jan 11, 2019 | Jan 31, 2019 | $0.369 | 0% |
| 2 | Oct 22, 2018 | Nov 02, 2018 | Nov 15, 2018 | $0.369 | 0% |
| 3 | Jul 26, 2018 | Aug 03, 2018 | Aug 15, 2018 | $0.351 | 0% |
| 4 | Apr 23, 2018 | May 03, 2018 | May 15, 2018 | $0.334 | 0% |
| 5 | Jan 25, 2018 | Feb 02, 2018 | Feb 15, 2018 | $0.318 | 0% |
FAQ
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