Sono-Tek Corp 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
Sono-Tek Corp stock downgraded from Buy Candidate to Hold/Accumulate after Monday trading session.
(Updated on May 20, 2024)
The Sono-Tek Corp stock price fell by -0.608% on the last day (Monday, 20th May 2024) from $4.95 to $4.92. During the last trading day the stock fluctuated 7.56% from a day low at $4.63 to a day high of $4.98. The price has risen in 6 of the last 10 days and is up by 5.58% 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 -6 thousand shares and in total, 4 thousand shares were bought and sold for approximately $18.31 thousand.
The stockhas broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $4.92, a level that may pose a second chance to hit a runner. According to fan-theory $6.05 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.
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SOTK Signals & Forecast
The Sono-Tek Corp stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately $4.93. On a fall, the stock will find some support from the long-term average at approximately $4.53. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. 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. A sell signal was issued from a pivot top point on Tuesday, May 14, 2024, and so far it has fallen -1.01%. Further fall is indicated until a new bottom pivot has been found. Volume fell along with the price during the last trading day which is technical positive. One should, however, note that this stock may have low liquidity in periods, which increases the general risk. The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for Sono-Tek Corp stock
Sono-Tek Corp finds support from accumulated volume at $4.74 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock has average movements during the day, but be aware of low or falling volume as this increases the risk. During the last day, the stock moved $0.350 between high and low, or 7.56%. For the last week the stock has had daily average volatility of 6.01%.
Our recommended stop-loss: $4.75 (-3.54%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 21 days ago.)
Trading Expectations (SOTK) For The Upcoming Trading Day Of Tuesday 21st
For the upcoming trading day on Tuesday, 21st we expect Sono-Tek Corp to open at $4.84, and during the day (based on 14 day Average True Range), to move between $4.65 and $5.19, which gives a possible trading interval of +/-$0.273 (+/-5.55%) up or down from last closing price. If Sono-Tek Corp takes out the full calculated possible swing range there will be an estimated 11.09% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $5.04 (2.53%) than the support at $4.74 (3.58%), 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.
Earnings coming up
Sono-Tek Corp will release earnings BMO on Thursday, May 23, 2024.The consensus among the analysts for the expected earnings (EPS) is $0.0100. We will update the financials statements for Sono-Tek Corp, that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 7.96% in the first trading day after earnings release.
Is Sono-Tek Corp stock A Buy?
Sono-Tek Corp holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: -0.730 Hold/Accumulate Downgraded
Predicted Opening Price for Sono-Tek Corp of Tuesday, May 21, 2024
| Fair opening price May 21, 2024 | Current price |
|---|---|
| $4.84 ( 1.56%) | $4.92 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for SOTK
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 5.19 | 5.56 % | |
| R2 | 5.06 | 2.84 % | ||
| R1 | 4.98 | 1.16 % | ||
| Current price: | 4.92 | |||
| Support | S1 | 4.71 | -4.27 % | |
| S2 | 4.63 | -5.95 % | ||
| S3 | 4.49 | -8.67 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 5.40 | 9.76 % | |
| R2 | 5.15 | 4.68 % | ||
| R1 | 5.04 | 2.53 % | ||
| Current price | 4.92 | |||
| Support | S1 | 4.74 | -3.58% | |
| S2 | 4.47 | -9.13% | ||
| S3 | 4.44 | -9.75% |
FAQ
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