City Office REIT Inc Forecast and Stock Analysis
Technical CIO stock analysis for February 15, 2019.
|Shorts||3.11% ( 2019-01-31 )|
City Office REIT Inc gained 0.50% in the last trading day, rising from $12.06 to $12.12 , and has now gained 8 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. The price has risen in 9 of the last 10 days and is up by 4.03% over the past 2 weeks. Volume fell in the last day by -16 032 shares, and in total, 159 556 shares bought and sold for approximately $1.93 million. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Close price at the end of the last trading day (Friday, 15th Feb 2019) of the CIO stock was $12.12. This is 0.5% more than the trading day before Thursday, 14th Feb 2019.
During day the stock fluctuated 0.97% from a day low at $12.07 to a day high of $12.19.
30 day high of the CIO stock price was $12.19 and low was $10.93.
90 day high was $12.19 and low was $9.73.
52 week high for the City Office REIT Inc - $13.20 and low - $9.73.
City Office REIT Inc lies in the upper part of a wide and strong 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 $12.25 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 10.29% during the next 3 months and, with 90% probability hold a price between $11.78 and $13.51 at the end of this period.
Only positive signals in the chart today. City Office REIT Inc 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 $11.94 and $11.32. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday January 22, 2019, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely.
Relative Strength Index (RSI)
RSI14 is 90 and the stock is extremely overbought on RSI14, but may also ontinue to gain. Some stocks see their best performance while being overbought, but very seldom does RSI remain so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $10.97 and $10.96.
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, City Office REIT Inc finds support just below today's level at $10.97. If this is broken, then the next support from accumulated volume will be at $10.96 and $10.56.
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 $0.12 (0.97%) between high and low. For the last week, the stock has had a daily average volatility of 1.41%.
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. Since the City Office REIT Inc has been rising for 8 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: $11.56 (-4.66%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 90 and this increases the risk substantially. There is a buy signal from pivot bottom found 18 days ago.)
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Evaluation: Buy Candidate
Several short-term signals, along with a general good trend, are positive and 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. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Strong Buy Candidate to a Buy Candidate.