L`Oreal Forecast and Stock Analysis
Technical 0H58.L stock analysis for Monday June 24, 2019.
L`Oreal fell by -0.10% in the last day ( Monday, 24th Jun 2019 ) from 255.25€ to 255.00€ and has now fallen 3 days in a row. During day the stock fluctuated 3.25% from a day low at 252.40€ to a day high of 260.60€. The price has risen in 7 of the last 10 days and is up by 4.19% over the past 2 weeks. Volume fell in the last day along with the stock, which is actually a good sign as volume should follow the stock. In the last day the trading volume fell by -794 320 shares and in total 344 663 shares bought and sold for approximately 87.89€ million.
- 30 day high of the 0H58.L stock price was 261.00€ and low was 237.10€.
- 90 day high was 261.00€ and low was 230.20€.
- 52 week high for the L`Oreal - 261.00€ and low - 179.60€.
L`Oreal lies in the upper part of a weak rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at 255.85€ will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 4.38% during the next 3 months and, with 90% probability hold a price between 251.48€ and 267.06€ at the end of this period.
L`Oreal holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at 252.96€ and 243.62€. A break down below any of these levels will issue sell signals. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Thursday June 20, 2019, which indicates further falls until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Relative Strength Index (RSI)
RSI14 is 93 and the stock is extremely overbought on RSI14, so further reactions should be expected. Some stocks may have a long and hard correction after reaching so high an RSI, but not in all cases. However, the short-term risk has increased drastically and larger movements in the next couple of days can be expected.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at 239.95€ and 239.55€.
There is 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, L`Oreal finds support just below today's level at 239.95€. If this is broken, then the next support from accumulated volume will be at 239.55€ and 238.55€.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved 8.20€ (3.25%) between high and low. For the last week, the stock has had a daily average volatility of 3.14%.
The stock is overbought on RSI14 and lies in the upper part of the trend. Normally this will pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stoploss: 246.20€ (-3.45%) (This stock has low daily movements and this gives low risk. The RSI14 is 93 and this increases the risk substantially. There is a sell signal from pivot top found 2 days ago.)
3.14 %Average volatility
Very Low Low Medium High Very High
L`Oreal holds several positive signals, but we still don't find these to be enough for a buy-recommendation. At the current level we recommend to hold or accumulate in this position whilst awaiting for further development.
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