ERP Soft Systems Limited 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
ERP Soft Systems Limited stock upgraded to Hold/Accumulate.
(Updated on Jun 25, 2024)
The ERP Soft Systems Limited stock price gained 4.94% on the last trading day (Tuesday, 25th Jun 2024), rising from ₹111.40 to ₹116.90. During the last trading day the stock fluctuated 0% from a day low at ₹116.90 to a day high of ₹116.90. The price has fallen in 4 of the last 10 days and is down by -2.58% for this period. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 216 more shares were traded than the day before. In total, 216 shares were bought and sold for approximately ₹25.25 thousand.
The stock lies in the lower part of a 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 ₹112.03 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 36.27% during the next 3 months and, with a 90% probability hold a price between ₹152.66 and ₹186.82 at the end of this 3-month period.
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ERPSOFT.BO Signals & Forecast
There are mixed signals in the stock today. The ERP Soft Systems Limited 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 ₹117.34. On a fall, the stock will find some support from the short-term average at ₹115.81. 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. A sell signal was issued from a pivot top point on Tuesday, May 21, 2024, and so far it has fallen -4.18%. 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). ERP Soft Systems Limited has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for ERP Soft Systems Limited stock
On the downside, the stock finds support just below today's level from accumulated volume at ₹110.65 and ₹99.29. 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, ERP Soft Systems Limited finds support just below today's level at ₹110.65. If this is broken, then the next support from accumulated volume will be at ₹99.29 and ₹89.88.
This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved ₹0 (0%) between high and low. For the last week, the stock has had daily average volatility of 2.25%.
Our recommended stop-loss: ₹111.64 (-4.50%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 25 days ago.)
Trading Expectations (ERPSOFT.BO) For The Upcoming Trading Day Of Wednesday 26th
For the upcoming trading day on Wednesday, 26th we expect ERP Soft Systems Limited to open at ₹116.90, and during the day (based on 14 day Average True Range), to move between ₹114.20 and ₹119.60, which gives a possible trading interval of +/-₹2.70 (+/-2.31%) up or down from last closing price. If ERP Soft Systems Limited takes out the full calculated possible swing range there will be an estimated 4.61% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at ₹117.00 (0.09%) than the support at ₹110.65 (5.35%), 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.
Is ERP Soft Systems Limited stock A Buy?
ERP Soft Systems Limited 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: 0.000 Hold/Accumulate Upgraded
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.
Predicted Opening Price for ERP Soft Systems Limited of Wednesday, June 26, 2024
| Fair opening price June 26, 2024 | Current price |
|---|---|
| ₹116.90 ( 0.00000000%) | ₹116.90 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ERPSOFT.BO
Fibonacci Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 116.90 | 0.00000000% |
| R2 | 116.90 | 0.00000000% |
| R1 | 116.90 | 0.00000000% |
| Price | 116.90 | |
| S1 | 116.90 | 0.00000000% |
| S2 | 116.90 | 0.00000000% |
| S3 | 116.90 | 0.00000000% |
Accumulated Volume Support & Resistance Levels
| Level | Price | |
|---|---|---|
| R3 | 120.75 | 3.29% |
| R2 | 120.00 | 2.65% |
| R1 | 117.00 | 0.0855% |
| Price | 116.90 | |
| S1 | 110.65 | -5.35% |
| S2 | 99.29 | -15.06% |
| S3 | 89.88 | -23.11% |
FAQ
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