High volatility in eHealth stock price on Friday which ended trading at $7.76
(Updated on Aug 05, 2022)

The eHealth stock price fell by -0.51% on the last day (Friday, 5th Aug 2022) from $7.80 to $7.76. and has now fallen 3 days in a row. During the last trading day the stock fluctuated 11.60% from a day low at $7.51 to a day high of $8.38. The price has fallen in 6 of the last 10 days, but is still up by 3.74% 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 -202 thousand shares and in total, 343 thousand shares were bought and sold for approximately $2.66 million.

The stock lies in the middle of a very 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 -32.01% during the next 3 months and, with a 90% probability hold a price between $4.72 and $6.01 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

A buy signal was issued from a pivot bottom point on Monday, August 01, 2022, and so far it has risen 7.63%. 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. The eHealth stock holds a buy signal from the short-term moving average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term moving average at $8.55. On a fall, the stock will find some support from the short-term average at $7.62. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. 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

eHealth finds support from accumulated volume at $7.68 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 $0.87 between high and low, or 11.60%. For the last week, the stock has had a daily average volatility of 9.04%.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations For The Upcoming Trading Day Of Monday 8th

For the upcoming trading day on Monday 8th we expect eHealth to open at $7.88, and during day (based on 14 day Average True Range), to move between $7.13 and $8.39, which gives a possible trading interval of +/-$0.63 (+/-8.11%) up or down from last closing price. If eHealth takes out the full calculated possible swing range there will be an estimated 16.22% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $7.80 (0.52%) than the support at $7.68 (1.03%), 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 eHealth stock A Buy?

eHealth holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock.

Current score: -1.597

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