High volatility in Gaiam stock price on Monday which ended trading at $2.47
(Updated on Sep 26, 2022)

Sell candidate since 2022-09-13 Loss -26.92% PDF

The Gaiam stock price fell by -8.18% on the last day (Monday, 26th Sep 2022) from $2.69 to $2.47. It has now fallen 4 days in a row. During the last trading day the stock fluctuated 13.06% from a day low at $2.45 to a day high of $2.77. The price has fallen in 7 of the last 10 days and is down by -31.39% for this period. Volume has increased on the last day by 67 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 118 thousand shares were bought and sold for approximately $292.19 thousand.

The stock has broken the very wide and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point ($2.48) are considered to be a "second chance" to get out. According to the fan-theory $1.58 will represent the new bottom line of the next trend, but it is far too early to say this for certain.

Signals & Forecast

There are few to no technical positive signals at the moment. The Gaiam 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 $2.84 and $3.24. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Monday, September 12, 2022, and so far it has fallen -31.39%. 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). Gaiam gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs".

Support, Risk & Stop-loss

There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $0.32 between high and low, or 13.06%. For the last week, the stock has had daily average volatility of 8.06%.

Gaiam is oversold on RSI14 (21). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.

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 Tuesday 27th

For the upcoming trading day on Tuesday, 27th we expect Gaiam to open at $2.56, and during the day (based on 14 day Average True Range), to move between $2.26 and $2.68, which gives a possible trading interval of +/-$0.21 (+/-8.39%) up or down from last closing price. If Gaiam takes out the full calculated possible swing range there will be an estimated 16.78% move between the lowest and the highest trading price during the day.

With no support below and resistance from accumulated volume @ $0.22 (8.91%) our system find the risk reward not very attractive.

Is Gaiam stock A Buy?

Gaiam holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.

Current score: -8.375

Strong Sell Candidate Unchanged

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