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:

Bollinger Bottleneck Buy Pattern 1
Bollinger Bottleneck Buy Pattern 2
Bollinger Bottleneck Sell Pattern

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

RSI low/high Values: [ 20 - 75 ]
* StockInvest.us uses dynamically calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behavior.
AI Analysis of GPS
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Red day on Wednesday for Gap Inc (The) stock after losing 1.55%
(Updated on Mar 27, 2024)

Buy or Hold candidate since Mar 08, 2024 Gain 30.45% PDF

The Gap Inc (The) stock price fell by -1.55% on the last day (Wednesday, 27th Mar 2024) from $27.72 to $27.29. It has now fallen 4 days in a row. During the last trading day the stock fluctuated 2.54% from a day low at $27.12 to a day high of $27.81. The price has risen in 6 of the last 10 days and is up by 19.07% 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 -907 thousand shares and in total, 7 million shares were bought and sold for approximately $193.86 million.

The stock lies in the upper part of a very wide and strong rising 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 $28.81 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 21.38% during the next 3 months and, with a 90% probability hold a price between $24.65 and $34.97 at the end of this 3-month period.

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GPS Signals & Forecast

The Gap Inc (The) 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 $27.41. On a fall, the stock will find some support from the long-term average at approximately $21.78. 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. 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. A sell signal was issued from a pivot top point on Thursday, March 21, 2024, and so far it has fallen -4.18%. Further fall is indicated until a new bottom pivot has been found. 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 for Gap Inc (The) stock

On the downside, the stock finds support just below today's level from accumulated volume at $23.59 and $21.64. 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, Gap Inc (The) finds support just below today's level at $23.59. If this is broken, then the next support from accumulated volume will be at $21.64 and $20.92.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $0.690 between high and low, or 2.54%. For the last week, the stock has had daily average volatility of 3.35%.

The Gap Inc (The) stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: $26.04 (-4.58%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 88 and this increases the risk substantially. There is a sell signal from a pivot top found 4 days ago.)

Trading Expectations (GPS) For The Upcoming Trading Day Of Thursday 28th

For the upcoming trading day on Thursday, 28th we expect Gap Inc (The) to open at $27.41, and during the day (based on 14 day Average True Range), to move between $26.32 and $28.26, which gives a possible trading interval of +/-$0.97 (+/-3.55%) up or down from last closing price. If Gap Inc (The) takes out the full calculated possible swing range there will be an estimated 7.09% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $27.91 (2.27%) than the support at $23.59 (13.56%), 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 Gap Inc (The) stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Gap Inc (The) stock to perform well in the short-term.

Current score: 2.817 Buy Candidate Unchanged

Predicted Opening Price for Gap Inc (The) of Thursday, March 28, 2024

Fair opening price March 28, 2024 Current price
$27.41 ( 0.428%) $27.29

The predicted opening price is based on yesterday's movements between high, low, and closing price.

Trading levels for GPS

Fibonacci Support & Resistance Levels

Level Price
Resistance R3 28.10 2.96 %
R2 27.83 1.99 %
R1 27.67 1.39 %
Current price: 27.29
Support S1 27.14 -0.538 %
S2 26.98 -1.14 %
S3 26.72 -2.10 %

Accumulated Volume Support & Resistance Levels

Level Price
Resistance R3 28.48 4.36 %
R2 28.08 2.89 %
R1 27.91 2.27 %
Current price 27.29
Support S1 23.59 -13.56%
S2 21.64 -20.70%
S3 20.92 -23.34%

GPS Dividend Payout History


# Declaration Date Ex-Date Pay Date Amount Yield
1 Feb 27, 2024 Apr 10, 2024 May 01, 2024 $0.150 0.550%
2 Feb 27, 2024 Apr 09, 2024 May 01, 2024 $0.150 0.550%
3 Nov 07, 2023 Jan 02, 2024 Jan 31, 2024 $0.150 0.80%
4 Aug 16, 2023 Oct 03, 2023 Oct 25, 2023 $0.150 1.15%
5 May 09, 2023 Jul 03, 2023 Jul 26, 2023 $0.150 1.51%

FAQ

What is the symbol for Gap Inc (The) Stock and on which exchange is it traded?
The symbol for Gap Inc (The) is GPS and it is traded on the NYSE (New York Stock Exchange).

Should I buy or sell Gap Inc (The) Stock?
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Gap Inc (The) stock to perform well in the short-term.

How to buy Gap Inc (The) Stock?
Gap Inc (The) Stock can be purchased through just about any brokerage firm, including online brokerage services.
Click here for our free guide on how to buy Gap Inc (The) Stock.

What's the current price of Gap Inc (The) Stock?
As of the end of day on the 2024-03-27, the price of an Gap Inc (The) (GPS) share was $27.29.

What is the 52-week high and low for Gap Inc (The) Stock?
The 52-week high for Gap Inc (The) Stock is $28.59 and the 52-week low is $7.22.

What is the market capitalization of Gap Inc (The) Stock?
As of the 2024-03-27, the market capitalization of Gap Inc (The) is 10.279B.

When is the next earnings date for Gap Inc (The)?
The upcoming earnings date for Gap Inc (The) is May 23, 2024.
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About Gap Inc (The)

Gap (The) The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The compan... GPS Profile

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