Localiza Rent a Car S.A. Stock Forecast
Localiza Rent a Car S.A. stock upgraded from Sell Candidate to Hold/Accumulate after Thursday trading session.
(Updated on May 02, 2024)
The Localiza Rent a Car S.A. stock price fell by -1.06% on the last day (Thursday, 2nd May 2024) from R$49.03 to R$48.51. During the last trading day the stock fluctuated 3.70% from a day low at R$48.16 to a day high of R$49.94. The price has fallen in 6 of the last 10 days and is down by -4.71% for this period. Volume has increased on the last day by 20 million 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, 20 million shares were bought and sold for approximately R$972.89 million.
The stock lies in the lower of a wide and falling trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at R$48.48 is broken, it will firstly indicate a stronger fall rate. Given the current short-term trend, the stock is expected to fall -5.36% during the next 3 months and, with a 90% probability hold a price between R$45.88 and R$51.53 at the end of this 3-month period.
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RENT3.SA Signals & Forecast
There are few to no technical positive signals at the moment. The Localiza Rent a Car S.A. 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 R$49.41 and R$51.94. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Monday, April 29, 2024, and so far it has fallen -4.04%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
A sell signal from a double top formation was found on Thursday, March 28, 2024 with a target of R$50.34. Despite whether the objective of the signal formation has been reached the stock may continue to fall.
Support, Risk & Stop-loss for Localiza Rent a Car S.A. stock
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.
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 R$1.78 between high and low, or 3.70%. For the last week, the stock has had daily average volatility of 2.30%.
Our recommended stop-loss: R$46.23 (-4.69%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 3 days ago.)
Trading Expectations (RENT3.SA) For The Upcoming Trading Day Of Friday 3rd
For the upcoming trading day on Friday, 3rd we expect Localiza Rent a Car S.A. to open at R$48.87, and during the day (based on 14 day Average True Range), to move between R$47.08 and R$49.94, which gives a possible trading interval of +/-R$1.43 (+/-2.95%) up or down from last closing price. If Localiza Rent a Car S.A. takes out the full calculated possible swing range there will be an estimated 5.90% move between the lowest and the highest trading price during the day.
With no support below and resistance from accumulated volume @ R$51.33, some R$2.82 (5.81%) from the current price of R$48.51, our system finds the risk reward not very attractive.
Is Localiza Rent a Car S.A. stock A Buy?
Localiza Rent a Car S.A. holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.
Current score: 0.000 Hold/Accumulate Upgraded
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for Localiza Rent a Car S.A. of Friday, May 3, 2024
| Fair opening price May 3, 2024 | Current price |
|---|---|
| R$48.87 ( 0.742%) | R$48.51 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for RENT3.SA
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 50.65 | 4.41 % | |
| R2 | 49.97 | 3.01 % | ||
| R1 | 49.55 | 2.14 % | ||
| Current price: | 48.51 | |||
| Support | S1 | 48.19 | -0.660 % | |
| S2 | 47.77 | -1.53 % | ||
| S3 | 47.09 | -2.93 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 52.69 | 8.62 % | |
| R2 | 51.85 | 6.89 % | ||
| R1 | 51.33 | 5.81 % | ||
| Current price | 48.51 | |||
| Support | S1 | 0 | . | |
| S2 | 0 | . | ||
| S3 | 0 | . |
RENT3 Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Apr 02, 2024 | Apr 02, 2024 | May 23, 2024 | R$0.384 | 0.791% |
| 2 | Dec 27, 2023 | Dec 27, 2023 | Dec 27, 2023 | R$0.383 | 0.606% |
| 3 | Sep 28, 2023 | Sep 28, 2023 | Sep 28, 2023 | R$0.407 | 0.722% |
| 4 | Jul 03, 2023 | Jul 03, 2023 | Jul 03, 2023 | R$0.349 | 0.520% |
| 5 | Mar 29, 2023 | Mar 29, 2023 | Mar 29, 2023 | R$0.369 | 0.719% |
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