Encore Capital Group 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
Stronger technical forecast for Encore Capital Group Inc stock price after Monday trading.
(Updated on Apr 29, 2024)
The Encore Capital Group Inc stock price gained 1.03% on the last trading day (Monday, 29th Apr 2024), rising from $41.63 to $42.06. During the last trading day the stock fluctuated 2.25% from a day low at $41.94 to a day high of $42.89. The price has risen in 6 of the last 10 days and is up by 0.29% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 133 thousand more shares were traded than the day before. In total, 292 thousand shares were bought and sold for approximately $12.30 million.
The stock lies in the middle of a wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -19.18% during the next 3 months and, with a 90% probability hold a price between $31.50 and $36.59 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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ECPG Signals & Forecast
There are mixed signals in the stock today. The Encore Capital Group 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 $42.25 and $44.32. A break-up above any of these levels will issue buy signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 3.75%. 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 is rising along with the price. This is considered to be a good technical signal.
Support, Risk & Stop-loss for Encore Capital Group Inc stock
Encore Capital Group Inc finds support from accumulated volume at $41.64 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
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 $0.95 between high and low, or 2.25%. For the last week, the stock has had daily average volatility of 2.56%.
Our recommended stop-loss: $39.75 (-5.50%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 9 days ago.)
Trading Expectations (ECPG) For The Upcoming Trading Day Of Tuesday 30th
For the upcoming trading day on Tuesday, 30th we expect Encore Capital Group Inc to open at $42.30, and during the day (based on 14 day Average True Range), to move between $40.65 and $43.47, which gives a possible trading interval of +/-$1.41 (+/-3.34%) up or down from last closing price. If Encore Capital Group Inc takes out the full calculated possible swing range there will be an estimated 6.69% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $41.64 (1.00%) than the resistance at $45.61 (8.44%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is Encore Capital Group Inc stock A Buy?
Encore Capital Group 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. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.
Current score: -0.635 Hold/Accumulate Upgraded
Predicted Opening Price for Encore Capital Group Inc of Tuesday, April 30, 2024
| Fair opening price April 30, 2024 | Current price |
|---|---|
| $42.30 ( 0.559%) | $42.06 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ECPG
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 43.24 | 2.81 % | |
| R2 | 42.88 | 1.95 % | ||
| R1 | 42.66 | 1.42 % | ||
| Current price: | 42.06 | |||
| Support | S1 | 41.93 | -0.300 % | |
| S2 | 41.71 | -0.83 % | ||
| S3 | 41.35 | -1.69 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 48.18 | 14.55 % | |
| R2 | 46.06 | 9.51 % | ||
| R1 | 45.61 | 8.44 % | ||
| Current price | 42.06 | |||
| Support | S1 | 41.64 | -1.00% | |
| S2 | 41.22 | -2.00% | ||
| S3 | 40.54 | -3.61% |
FAQ
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