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)
Bottlenecks in bandwidth indicates a upcoming change. Break up through the moving average line, or continuously movements above the moving average line indicates a break up, and vice versa downwards.
Stronger technical forecast for Fomento Economico Mexicano SAB de CV stock price after Friday trading.
(Updated on Jan 21, 2022)
Buy candidate since 2022-01-21 PDF
The Fomento Economico Mexicano SAB de CV stock price gained 0.72% on the last trading day (Friday, 21st Jan 2022), rising from $81.48 to $82.07. , and has now gained 3 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 day the stock fluctuated 1.96% from a day low at $81.03 to a day high of $82.62. The price has risen in 9 of the last 10 days and is up by 4.18% 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, 70 thousand more shares were traded than the day before. In total, 562 thousand shares were bought and sold for approximately $46.13 million.
The stock lies the upper part of a 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 $83.03 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 -2.03% during the next 3 months and, with a 90% probability hold a price between $67.41 and $81.34 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 Fomento Economico Mexicano SAB de CV stock holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately $82.13. On a fall, the stock will find some support from the long-term average at approximately $76.56. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. Volume is rising along with the price. This is considered to be a good technical signal. 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, January 18, 2022, and so far it has fallen -1.25%. 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).
Support, Risk & Stop-loss
On the downside, the stock finds support just below today's level from accumulated volume at $76.11 and $75.42. There is 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, Fomento Economico Mexicano SAB de CV finds support just below today's level at $76.11. If this is broken, then the next support from accumulated volume will be at $75.42 and $74.30.
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 $1.59 between high and low, or 1.96%. For the last week, the stock has had a daily average volatility of 2.39%.
Our recommended stop-loss: $78.85 (-3.93%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 3 days ago.)
Is Fomento Economico Mexicano SAB de CV stock A Buy?
Several short-term signals are positive, despite the stock being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.
Current score: 1.158Buy Candidate Upgraded
Predicted Opening Price for Fomento Economico Mexicano SAB de CV of Monday, January 24, 2022
The predicted opening price is based on yesterday's movements between high, low, and the closing price.
|Fair opening price January 24, 2022||Current price|
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On Jan 20, 2022 "HSBC" gave "$95.00" rating for FMX. The price target was set to $82.15+1.2%.
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