Ericsson Stock Forecast
Ericsson stock downgraded to Sell Candidate
(Updated on May 09, 2024)
The Ericsson stock price gained 0.570% on the last trading day (Thursday, 9th May 2024), rising from $5.26 to $5.29. During the last trading day the stock fluctuated 0.95% from a day low at $5.28 to a day high of $5.33. The price has risen in 6 of the last 10 days and is up by 0.95% over the past 2 weeks. Volume fell on the last day by -165 thousand shares and in total, 6 million shares were bought and sold for approximately $31.94 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 stockhas broken the wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $5.28, a level that may pose a second chance to hit a runner. According to fan-theory $5.89 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.
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ERIC Signals & Forecast
The Ericsson 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 $5.22 and $5.21. 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). 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. 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 Tuesday, April 23, 2024, and so far it has fallen -1.31%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Ericsson stock
Ericsson finds support from accumulated volume at $5.26 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 $0.0499 between high and low, or 0.95%. For the last week, the stock has had daily average volatility of 1.24%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (ERIC) For The Upcoming Trading Day Of Friday 10th
For the upcoming trading day on Friday, 10th we expect Ericsson to open at $5.30, and during the day (based on 14 day Average True Range), to move between $5.17 and $5.41, which gives a possible trading interval of +/-$0.123 (+/-2.32%) up or down from last closing price. If Ericsson takes out the full calculated possible swing range there will be an estimated 4.64% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $5.26 (0.57%) than the resistance at $5.35 (1.13%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is Ericsson stock A Buy?
Ericsson 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. 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: -1.842 Sell Candidate Downgraded
Predicted Opening Price for Ericsson of Friday, May 10, 2024
| Fair opening price May 10, 2024 | Current price |
|---|---|
| $5.30 ( 0.190%) | $5.29 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ERIC
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 5.35 | 1.13 % | |
| R2 | 5.33 | 0.773 % | ||
| R1 | 5.32 | 0.550 % | ||
| Current price: | 5.29 | |||
| Support | S1 | 5.28 | -0.171 % | |
| S2 | 5.27 | -0.393 % | ||
| S3 | 5.25 | -0.754 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 5.46 | 3.21 % | |
| R2 | 5.36 | 1.32 % | ||
| R1 | 5.35 | 1.13 % | ||
| Current price | 5.29 | |||
| Support | S1 | 5.26 | -0.567% | |
| S2 | 5.15 | -2.65% | ||
| S3 | 4.88 | -7.75% |
ERIC Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Jan 23, 2024 | Apr 04, 2024 | Apr 04, 2024 | $0.129 | 2.50% |
| 2 | Sep 28, 2023 | Sep 28, 2023 | Oct 04, 2023 | $0.125 | 2.64% |
| 3 | Jan 20, 2023 | Mar 30, 2023 | Apr 14, 2023 | $0.132 | 2.21% |
| 4 | Sep 07, 2022 | Sep 29, 2022 | Sep 30, 2022 | $0.116 | 2.02% |
| 5 | Jan 27, 2022 | Sep 30, 2021 | Mar 31, 2022 | $0.116 | 1.27% |
FAQ
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