Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, which purpose is to provide a relative definition of high and low. This defintion is used to identify buy and sell signals and have 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. Get-A-Graph 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)
Bottlenecks in bandwidth indicates a upcoming change. Break up through the moving average line, or continuously movements above the moving average line indicates a break up, and vice versa downwards.
ALLT Forecast and Technical Stock Analysis
Sell candidate since 2019-11-13 PDF
Allot Communications Ltd. fell by -1.16% in the last day ( Wednesday, 13th Nov 2019 ) from $8.62 to $8.52 and has now fallen 3 days in a row. During the day the stock fluctuated 1.41% from a day low at $8.50 to a day high of $8.62. The price has been going up and down for this period, and there has been a 9.94% gain for the last 2 weeks. Volume has increased in the last day by 23 635 shares but on falling prices. This may be an early warning and the risk will be increased slightly for the next couple of days. In total, 100 086 shares bought and sold for approximately $852 733.00.
- 30 day high of the ALLT stock price was $9.28 and low was $7.21.
- 90 day high was $9.28 and low was $7.01.
- 52 week high for Allot Communications Ltd. - $9.28 and low - $5.67.
Allot Communications Ltd. lies in the middle of a wide and weak rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 8.59% during the next 3 months and, with 90% probability hold a price between $8.19 and $9.67 at the end of this period.
There are mixed signals in the stock today. A sales signal was issued from a pivot top point on Wednesday November 06, 2019, which indicates further falls until a new bottom pivot has been found. Allot Communications Ltd. gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". Allot Communications Ltd. holds a sales 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. On further gains, the stock will meet resistance from the short-term moving average at approximately $8.68. On a fall, the stock will find some support from the long-term average at approximately $7.89. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sales signal.
Relative Strength Index (RSI)
RSImin/max Values: [ 25 - 75 ]
The stock holds a RSI14 at 79 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
* Stockinvest.us uses dynamical calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behaviour.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $7.93 and $7.70.
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, Allot Communications Ltd. finds support just below today's level at $7.93. If this is broken, then the next support from accumulated volume will be at $7.70 and $7.39.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $0.12 between high and low, or 1.41%. For the last week, the stock has had a daily average volatility of 2.77%.
Our recommended stop-loss: We hold a sell evaluation for this stock. No stop-loss set.
2.77 %Average volatility
Very Low Low Medium High Very High
Allot Communications Ltd. holds several negative signals and we believe that 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 recommendation for this stock since last evaluation from a Buy Candidate to a Sell Candidate.
|ALLT $8.52 ($-0.10 -1.16%)|
ALLT is down $0.10 today, but where's it headed in 2020?
|Zacks Investment Research is releasing its prediction for ALLT based on the 1-3 month system that more than doubles the S&P 500.
This report is free today for StockInvest.us readers.
Click here – the ALLT analysis is free »
Golden Star Signal
This unique signal uses moving averages and adds special requirements that convert the very good Golden Cross into a Golden Star.
This signal is rare and, in most cases, gives substantial returns. From 8.000 stocks usually only a few will trigger a Golden Star Signal per day!