Vermillion 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
High volatility in Vermillion stock price on Monday which ended trading at $4.11
(Updated on Jun 29, 2020)
The Vermillion stock price fell by -21.71% on the last day (Monday, 29th Jun 2020) from $5.25 to $4.11. During the last trading day the stock fluctuated 35.43% from a day low at $4.00 to a day high of $5.42. The price has risen in 7 of the last 10 days but is still down by -6.16% for this period. 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 -5 million shares and in total, 2 million shares were bought and sold for approximately $9.25 million.
The stock has broken the very wide and strong rising short-term trend down. This signalizes a slower rate of rising, but may also be an early warning about a possible trend shift. Due to the trend being broken there will now be resistance at the bottom line of the trend at $4.21. A reaction back to this level may hold a second chance to get out before further falls.
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VRML Signals & Forecast
The Vermillion 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 $4.66. On a fall, the stock will find some support from the long-term average at approximately $3.58. 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. 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 Friday, June 26, 2020, and so far it has fallen -21.71%. 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 Vermillion stock
On the downside, the stock finds support just below today's level from accumulated volume at $3.85 and $3.75. 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, Vermillion finds support just below today's level at $3.85. If this is broken, then the next support from accumulated volume will be at $3.75 and $3.30.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $1.42 between high and low, or 35.43%. For the last week the stock has had daily average volatility of 13.18%.
Our recommended stop-loss: $3.81 (-7.41%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 1 day ago.)
Trading Expectations (VRML) For The Upcoming Trading Day Of Tuesday 30th
For the upcoming trading day on Tuesday, 30th we expect Vermillion to open at $4.51, and during the day (based on 14 day Average True Range), to move between $3.55 and $4.67, which gives a possible trading interval of +/-$0.556 (+/-13.53%) up or down from last closing price. If Vermillion takes out the full calculated possible swing range there will be an estimated 27.07% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $4.14 (0.73%) than the support at $3.85 (6.33%), 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 Vermillion stock A Buy?
Vermillion 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 Strong Buy to a Hold/Accumulate candidate.
Current score: -0.629 Hold/Accumulate Downgraded
Predicted Opening Price for Vermillion of Tuesday, June 30, 2020
| Fair opening price June 30, 2020 | Current price |
|---|---|
| $4.51 ( 9.71%) | $4.11 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for VRML
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 5.93 | 44.19 % | |
| R2 | 5.38 | 31.02 % | ||
| R1 | 5.05 | 22.88 % | ||
| Current price: | 4.11 | |||
| Support | S1 | 3.97 | -3.46 % | |
| S2 | 3.63 | -11.60 % | ||
| S3 | 3.09 | -24.77 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 4.49 | 9.25 % | |
| R2 | 4.33 | 5.35 % | ||
| R1 | 4.14 | 0.730 % | ||
| Current price | 4.11 | |||
| Support | S1 | 3.85 | -6.33% | |
| S2 | 3.75 | -8.76% | ||
| S3 | 3.30 | -19.71% |
FAQ
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