Tue 23'rd May 2017
Cencosud SA Stock Analysis
Technical stock analysis for Tue 23'rd May 2017
Hold candidate since 2017-05-23
Cencosud SA lies in the lower of a wide and weak falling trend in the short term, and this will normally pose a very good buying opportunity. A break down the bottom trend line at USD 7.95 will firstly indicate a stronger fall rate. Given the current short-term trend, the stock is expected to fall -6.9% during the next 3 months and, with 90% probability hold a price between USD 7.40 and USD 8.58 at the end of this period.
A buy signal was issued from a pivot bottom point on Tuesday May 09, 2017, which indicates further gains until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. Cencosud SA 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 USD 8.24 and USD 8.70. A break-up above any of these levels will issue buy signals. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not.
Relative Strength Index (RSI)
RSI14 is 36 and the stock is currently not being overbought or oversold
Support & Resistance
Cencosud SA finds support from accumulated volume at USD 8.02. On the upside the stock meets some resistance from accumulated volume at USD 9.27, USD 8.99 and USD 8.65.
In general the stock tends to have controlled movements, but the low liquidity has increased the risk substantially.
Our recommended stoploss: USD 7.67 (-5.69%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 10 days ago.)