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.
Amphastar Pharmaceuticals Forecast and Stock Analysis
Technical AMPH stock analysis for Monday June 24, 2019.
Amphastar Pharmaceuticals fell by -2.03% in the last day ( Monday, 24th Jun 2019 ) from $20.64 to $20.22 and has now fallen 4 days in a row. During day the stock fluctuated 3.27% from a day low at $20.17 to a day high of $20.83. The price has fallen in 6 of the last 10 days , but is still up by 0.25% 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 -17 906 shares and in total 180 291 shares bought and sold for approximately $3.65 million.
- 30 day high of the AMPH stock price was $21.32 and low was $18.60.
- 90 day high was $23.06 and low was $18.60.
- 52 week high for the Amphastar Pharmaceuticals - $25.43 and low - $15.04.
Amphastar Pharmaceuticals lies in the middle of a wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -3.65% during the next 3 months and, with 90% probability hold a price between $18.03 and $21.68 at the end of this period.
There are few to none technical positive signals at the moment. Amphastar Pharmaceuticals holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at $20.45 and $20.78. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Wednesday June 19, 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 58 and the stock is currently not being overbought or oversold
Support & Resistance
Amphastar Pharmaceuticals finds support from accumulated volume at $20.11.
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 $0.66 (3.27%) between high and low. For the last week, the stock has had a daily average volatility of 2.65%.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
2.65 %Average volatility
Very Low Low Medium High Very High
Amphastar Pharmaceuticals holds several negative signals and is within a wide and falling trend, so we believe 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 Sell Candidate to a Strong Sell Candidate.
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|AMPH $20.22 ($-0.42 -2.03%)|
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