Strong Buy Candidate
Fri 21'st Apr 2017
Rockwell Collins Inc Stock Analysis
Technical stock analysis for Fri 21'st Apr 2017
Buy candidate since 2017-04-19 Gain 6.79%
Rockwell Collins Inc has broken the strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at USD 103.92, a level that may pose a second chance to hit a runner. According to fan-theory USD 110.39 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.
Only positive signals in the chart today. Rockwell Collins 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 USD 98.76 and USD 98.19. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday April 13, 2017, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
* Golden Star Signal* is when the short-term moving average, the long-term moving average, and priceline meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
Relative Strength Index (RSI)
The stock holds a RSI14 at 72 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
On the downside, the stock finds support just below today's level from accumulated volume at USD 98.04 and USD 97.02. There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well during the next couple of days.
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, Rockwell Collins Inc finds support just below today's level at 98.04. If this is broken, then the next support from accumulated volume will be at 97.02 and 96.78.
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 USD 4.66 (4.66%) between high and low. For the last week, the stock has had a daily average volatility of 2.47%.
The stock is extremely overbought on RSI14 (72). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stoploss: USD 100.85 (-3.68%) (This stock has low daily movements and this gives low risk. The RSI14 is 72 and this increases the risk substantially. There is a buy signal from pivot bottom found 5 days ago.)
Rockwell Collins Inc holds several positive signals and has broken the strong rising trend up. As the stock is also in great technical shape, we therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Strong Buy Candidate.