Root Inc 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
Big movements in Root Inc stock price on Friday moving 12.60% between high and low
(Updated on May 03, 2024)
The Root Inc stock price fell by -0.99% on the last day (Friday, 3rd May 2024) from $56.85 to $56.29. During the last trading day the stock fluctuated 12.60% from a day low at $52.37 to a day high of $58.97. The price has risen in 8 of the last 10 days and is up by 9.43% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -803 thousand shares and in total, 786 thousand shares were bought and sold for approximately $44.22 million.
Given the current short-term trend, the stock is expected to rise 180.32% during the next 3 months and, with a 90% probability hold a price between $157.79 and $293.23 at the end of this 3-month period.
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ROOT Signals & Forecast
There are few to no technical positive signals at the moment. The Root Inc stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $63.80 and $61.79. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Friday, April 05, 2024, and so far it has fallen -32.10%. 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 fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss for Root Inc stock
On the downside, the stock finds support just below today's level from accumulated volume at $52.25 and $46.54. 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, Root Inc finds support just below today's level at $52.25. If this is broken, then the next support from accumulated volume will be at $46.54 and $44.12.
This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $6.60 between high and low, or 12.60%. For the last week, the stock has had daily average volatility of 15.92%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (ROOT) For The Upcoming Trading Day Of Monday 6th
For the upcoming trading day on Monday, 6th we expect Root Inc to open at $55.88, and during the day (based on 14 day Average True Range), to move between $48.55 and $64.03, which gives a possible trading interval of +/-$7.74 (+/-13.76%) up or down from last closing price. If Root Inc takes out the full calculated possible swing range there will be an estimated 27.52% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $56.85 (0.99%) than the support at $52.25 (7.18%), 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 Root Inc stock A Buy?
The Root Inc stock holds several negative signals and despite the positive trend, we believe Root Inc will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock.
Current score: -5.213 Strong Sell Candidate Unchanged
Predicted Opening Price for Root Inc of Monday, May 6, 2024
| Fair opening price May 6, 2024 | Current price |
|---|---|
| $55.88 ( 0.734%) | $56.29 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ROOT
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 62.48 | 10.99 % | |
| R2 | 59.96 | 6.51 % | ||
| R1 | 58.40 | 3.74 % | ||
| Current price: | 56.29 | |||
| Support | S1 | 53.36 | -5.21 % | |
| S2 | 51.80 | -7.98 % | ||
| S3 | 49.28 | -12.46 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 69.91 | 24.20 % | |
| R2 | 59.13 | 5.05 % | ||
| R1 | 56.85 | 0.99 % | ||
| Current price | 56.29 | |||
| Support | S1 | 52.25 | -7.18% | |
| S2 | 46.54 | -17.32% | ||
| S3 | 44.12 | -21.62% |
FAQ
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