Diageo plc Stock Forecast

Diageo plc stock downgraded from Buy Candidate to Hold/Accumulate after Thursday trading session.
(Updated on Apr 18, 2024)

GUI.DE Signals & Forecast

There are mixed signals in the stock today. The Diageo plc 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 33.82€. On a fall, the stock will find some support from the short-term average at 32.80€. 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. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 2.56%. Further rise is indicated until a new top pivot has been found.

Support, Risk & Stop-loss for Diageo plc stock

Diageo plc finds support from accumulated volume at 32.57€ and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have controlled movements and therefore the general risk is considered low. However, be aware of low or falling volume and make sure to keep an eye on the stock. During the last day, the stock moved 0.475€ between high and low, or 1.44%. For the last week the stock has had daily average volatility of 1.66%.

Our recommended stop-loss: 31.45€ (-4.94%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 2 days ago.)

Trading Expectations (GUI.DE) For The Upcoming Trading Day Of Friday 19th

For the upcoming trading day on Friday, 19th we expect Diageo plc to open at 33.18€, and during the day (based on 14 day Average True Range), to move between 32.61€ and 33.56€, which gives a possible trading interval of +/-0.470€ (+/-1.42%) up or down from last closing price. If Diageo plc takes out the full calculated possible swing range there will be an estimated 2.84% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at 33.46€ (1.13%) than the support at 32.57€ (1.56%), 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 Diageo plc stock A Buy?

Diageo plc 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. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.

Current score: 0.707 Hold/Accumulate Downgraded

Predicted Opening Price for Diageo plc of Friday, April 19, 2024

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