Green day on Friday for Digimarc Corporation
(Updated on Aug 05, 2022)
Buy or Hold candidate since 2022-07-29 Gain 14.76% PDF
The Digimarc Corporation stock price gained 1.68% on the last trading day (Friday, 5th Aug 2022), rising from $17.28 to $17.57. , and has now gained 5 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 last trading day the stock fluctuated 6.26% from a day low at $16.76 to a day high of $17.81. The price has risen in 7 of the last 10 days and is up by 15.52% over the past 2 weeks. Volume fell on the last day by -60 thousand shares and in total, 126 thousand shares were bought and sold for approximately $2.22 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.
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 $17.68 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 -18.68% during the next 3 months and, with a 90% probability hold a price between $9.89 and $14.38 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 Digimarc Corporation 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 $16.12 and $15.06. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, July 18, 2022, and so far it has risen 34.33%. 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
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 $1.05 between high and low, or 6.26%. For the last week, the stock has had a daily average volatility of 7.56%.
The Digimarc Corporation 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: $17.05 (-2.96%) (This stock has high daily movements and this gives high risk. The RSI14 is 77 and this increases the risk substantially. There is a buy signal from a pivot bottom found 14 days ago.)
Trading Expectations For The Upcoming Trading Day Of Monday 8th
For the upcoming trading day on Monday 8th we expect Digimarc Corporation to open at $17.38, and during day (based on 14 day Average True Range), to move between $16.39 and $18.75, which gives a possible trading interval of +/-$1.18 (+/-6.72%) up or down from last closing price. If Digimarc Corporation takes out the full calculated possible swing range there will be an estimated 13.45% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $17.61 (0.23%) than the support at $17.26 (1.76%), our systems don't find the trading risk/reward intra-day attractive and any bets should be hold until the stock is closer to the support level.
Is Digimarc Corporation stock A Buy?
Digimarc Corporation 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
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.Hold/Accumulate Unchanged
Predicted Opening Price for Digimarc Corporation of Monday, August 8, 2022
The predicted opening price is based on yesterday's movements between high, low, and the closing price.
|Fair opening price August 8, 2022||Current price|
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