NEL ASA Stock Forecast
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:
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
NEL ASA stock price up 2.24% on Wednesday
(Updated on May 15, 2024)
The NEL ASA stock price gained 2.24% on the last trading day (Wednesday, 15th May 2024), rising from $0.559 to $0.572. During the last trading day the stock fluctuated 1.97% from a day low at $0.563 to a day high of $0.574. The price has risen in 8 of the last 10 days and is up by 21.6% over the past 2 weeks. Volume fell on the last day by -5 thousand shares and in total, 15 thousand shares were bought and sold for approximately $8.62 thousand. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies in the upper part of a very wide and weak 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 $0.601 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 8.56% during the next 3 months and, with a 90% probability hold a price between $0.460 and $0.653 at the end of this 3-month period.
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NLLSF Signals & Forecast
The NEL ASA 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 $0.527 and $0.480. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, April 24, 2024, and so far it has risen 38.71%. 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. 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 not be. The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for NEL ASA stock
On the downside, the stock finds support just below today's level from accumulated volume at $0.461 and $0.454. 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, NEL ASA finds support just below today's level at $0.461. If this is broken, then the next support from accumulated volume will be at $0.454 and $0.436.
This stock may move much during the day (volatility) and with periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved $0.0111 between high and low, or 1.97%. For the last week the stock has had daily average volatility of 4.45%.
The NEL ASA 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: $0.554 (-2.98%) (This stock has high daily movements and this gives high risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 15 days ago.)
Trading Expectations (NLLSF) For The Upcoming Trading Day Of Thursday 16th
For the upcoming trading day on Thursday, 16th we expect NEL ASA to open at $0.570, and during the day (based on 14 day Average True Range), to move between $0.536 and $0.607, which gives a possible trading interval of +/-$0.0353 (+/-6.18%) up or down from last closing price. If NEL ASA takes out the full calculated possible swing range there will be an estimated 12.35% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $0.581 (1.68%) than the support at $0.461 (19.27%), 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 NEL ASA stock A Buy?
NEL ASA holds several positive signals and is within a weak rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.
Current score: 5.316 Strong Buy Candidate Unchanged
Predicted Opening Price for NEL ASA of Thursday, May 16, 2024
| Fair opening price May 16, 2024 | Current price |
|---|---|
| $0.570 ( 0.309%) | $0.572 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for NLLSF
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.581 | 1.63 % | |
| R2 | 0.577 | 0.89 % | ||
| R1 | 0.574 | 0.433 % | ||
| Current price: | 0.572 | |||
| Support | S1 | 0.565 | -1.05 % | |
| S2 | 0.563 | -1.51 % | ||
| S3 | 0.559 | -2.25 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0.581 | 1.68 % | ||
| Current price | 0.572 | |||
| Support | S1 | 0.461 | -19.27% | |
| S2 | 0.454 | -20.52% | ||
| S3 | 0.436 | -23.71% |
FAQ
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