Merchants Bancorp Stock Forecast

Merchants Bancorp stock upgraded to Buy Candidate.
(Updated on May 07, 2024)

MBIN Signals & Forecast

Mostly positive signals in the chart today. The Merchants Bancorp stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $43.42 and $41.04. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, April 17, 2024, and so far it has risen 24.87%. 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). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

Support, Risk & Stop-loss for Merchants Bancorp stock

On the downside, the stock finds support just below today's level from accumulated volume at $43.32 and $40.33. 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, Merchants Bancorp finds support just below today's level at $43.32. If this is broken, then the next support from accumulated volume will be at $40.33 and $39.71.

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 $1.24 between high and low, or 2.65%. For the last week, the stock has had daily average volatility of 3.41%.

The Merchants Bancorp stock is extremely overbought on RSI14 (86). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken. Since the Merchants Bancorp has been rising for 7 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stop-loss: $45.68 (-2.78%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 86 and this increases the risk substantially. There is a buy signal from a pivot bottom found 14 days ago.)

Trading Expectations (MBIN) For The Upcoming Trading Day Of Wednesday 8th

For the upcoming trading day on Wednesday, 8th we expect Merchants Bancorp to open at $47.32, and during the day (based on 14 day Average True Range), to move between $45.52 and $48.46, which gives a possible trading interval of +/-$1.47 (+/-3.14%) up or down from last closing price. If Merchants Bancorp takes out the full calculated possible swing range there will be an estimated 6.28% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $43.32, some $3.67 (7.81%) from the current price of $46.99, our system finds the risk reward attractive.

Is Merchants Bancorp stock A Buy?

Several short-term signals are positive and the stock has broken the horizontal trend up, which indicates an even stronger rate of rising. We conclude that the current level may hold a buying opportunity as there is a fair chance for Merchants Bancorp stock to perform well in the short-term period. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.

Current score: 3.289 Buy Candidate Upgraded

Predicted Opening Price for Merchants Bancorp of Wednesday, May 8, 2024

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