Approach Resources Inc. Forecast and Stock Analysis
Technical AREX stock analysis for February 15, 2019.
Approach Resources Inc. fell by -0.95% in the last day from $1.05 to $1.04 The price has risen in 5 of the last 10 days and is up by 8.88% over the past 2 weeks. Volume has increased in the last day by 39 063 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, 157 609 shares bought and sold for approximately $163 913.00.
Close price at the end of the last trading day (Friday, 15th Feb 2019) of the AREX stock was $1.04. This is 0.95% less than the trading day before Thursday, 14th Feb 2019.
During day the stock fluctuated 3.85% from a day low at $1.04 to a day high of $1.08.
30 day high of the AREX stock price was $1.14 and low was $0.89.
90 day high was $1.45 and low was $0.83.
52 week high for the Approach Resources Inc. - $3.30 and low - $0.83.
Approach Resources Inc. lies the upper part of a very wide and 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 $1.12 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 -25.53% during the next 3 months and, with 90% probability hold a price between $0.45 and $0.83 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 Thursday February 14, 2019, which indicates further falls until a new bottom pivot has been found. Approach Resources Inc. 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-off's". Approach Resources Inc. 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 $1.02 and $1.03. A break down below any of these levels will issue sell signals.
Relative Strength Index (RSI)
The stock holds a RSI14 at 71 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.
Support & Resistance
Approach Resources Inc. finds support from accumulated volume at $1.03.
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 $0.04 between high and low, or 3.85%. For the last week, the stock has had a daily average volatility of 7.93%.
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 and the RSI is still moving upwards. Regardless, the high RSI together with the trendposition 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: $1.00 (-3.45%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 71 and this increases the risk substantially. There is a sell signal from pivot top found 1 days ago.)
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Approach Resources Inc. 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. 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 Hold/Accumulate.