Home BancShares stock downgraded to Sell Candidate
(Updated on Sep 26, 2022)

Sell candidate since 2022-09-26 PDF

The Home BancShares stock price fell by -0.87% on the last day (Monday, 26th Sep 2022) from $23.04 to $22.84. It has now fallen 6 days in a row. During the last trading day the stock fluctuated 2.46% from a day low at $22.77 to a day high of $23.33. The price has fallen in 7 of the last 10 days and is down by -4.32% for this period. Volume has increased on the last day by 144 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, 1 million shares were bought and sold for approximately $24.45 million.

The stock has broken the wide and strong rising short-term trend down. This signalizes a slower rate of rising, but may also be an early warning about a possible trend shift. Due to the trend being broken there will now be resistance at the bottom line of the trend at $22.94. A reaction back to this level may hold a second chance to get out before further falls.

Signals & Forecast

A buy signal was issued from a pivot bottom point on Tuesday, September 06, 2022, and so far it has risen 2.42%. Further rise is indicated until a new top pivot has been found. 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. The Home BancShares 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 $23.51 and $23.97. A break-up above any of these levels will issue buy signals. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

Support, Risk & Stop-loss

Home BancShares finds support from accumulated volume at $22.08 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 very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $0.56 between high and low, or 2.46%. For the last week the stock has had daily average volatility of 2.21%.

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 Home BancShares to open at $22.98, and during the day (based on 14 day Average True Range), to move between $22.26 and $23.42, which gives a possible trading interval of +/-$0.58 (+/-2.53%) up or down from last closing price. If Home BancShares takes out the full calculated possible swing range there will be an estimated 5.05% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $22.08 (3.33%) than the resistance at $23.65 (3.55%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Home BancShares stock A Buy?

The Home BancShares stock holds several negative signals and despite the positive trend, we believe Home BancShares will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.

Current score: -1.031

Sell Candidate Downgraded

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