Companhia de Saneamento Básico do Stock Forecast

Weaker technical forecast for Companhia de Saneamento Básico do as stock downgraded to Sell Candidate.
(Updated on May 31, 2024)

SBSP3.SA Signals & Forecast

There are few to no technical positive signals at the moment. The Companhia de Saneamento Básico do 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$74.88 and R$79.43. 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 19, 2024, and so far it has fallen -12.58%. 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.

Support, Risk & Stop-loss for Companhia de Saneamento Básico do 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$1.33 between high and low, or 1.82%. For the last week, the stock has had daily average volatility of 1.68%.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (SBSP3.SA) For The Upcoming Trading Day Of Monday 3rd

For the upcoming trading day on Monday, 3rd we expect Companhia de Saneamento Básico do Estado de São Paulo - SABESP to open at R$73.84, and during the day (based on 14 day Average True Range), to move between R$72.41 and R$75.31, which gives a possible trading interval of +/-R$1.45 (+/-1.96%) up or down from last closing price. If Companhia de Saneamento Básico do Estado de São Paulo - SABESP takes out the full calculated possible swing range there will be an estimated 3.92% move between the lowest and the highest trading price during the day.

With no support below and resistance from accumulated volume @ R$80.29, some R$6.43 (8.71%) from the current price of R$73.86, our system finds the risk reward not very attractive.

Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP stock A Buy?

Companhia de Saneamento Básico do holds several negative signals and is within a wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore 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: -2.716 Sell Candidate Downgraded

Predicted Opening Price for Companhia de Saneamento Básico do Estado de São Paulo - SABESP of Monday, June 3, 2024

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