Fri 21'st Apr 2017
ABAXIS Stock Analysis
Technical stock analysis for Fri 21'st Apr 2017
Buy candidate since 2017-04-17 Gain 3.01%
ABAXIS lies the upper part of a weak falling 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 USD 49.58 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -4.8% during the next 3 months and, with 90% probability hold a price between USD 42.72 and USD 47.22 at the end of this period.
Only positive signals in the chart today. ABAXIS holds buy signals from both short- and long-term moving averages, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down there will be some support from the lines at USD 47.75 and USD 48.32. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday April 13, 2017, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
RSI14 is 54 and the stock is currently not being overbought or oversold
Support & Resistance
ABAXIS finds support from accumulated volume at USD 48.33, USD 48.00, and USD 47.20. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 49.41, USD 50.95 and USD 49.09.
The stock is about to test the resistance from accumulated volume at USD 49.41 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
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 USD 0.65 (1.34%) between high and low. For the last week, the stock has had a daily average volatility of 2.57%.
Since the ABAXIS has been rising for 6 days in a row, the risk for the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stoploss: USD 46.67 (-4.53%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 5 days ago.)
Several short-term signals are positive, despite the stock being in a weak falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term. We have upgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Buy Candidate.