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Fri 25'th May 2018

PERIOD 2018-02-26 - 2018-05-25
CHANGE 0.21%
PRICE $138.10

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)

Live Samples:

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.

Source: http://www.bollingerbands.com

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Rockwell Collins Inc Stock Analysis

Technical stock analysis for Fri 25'th May 2018

Hold candidate since 2018-05-23 Gain 0.17%

Rockwell Collins Inc gained 0.21% in the last trading day, rising from $137.81 to $138.10 The price has risen in 7 of the last 10 days and is up by 2.83% over the past 2 weeks. Volume has increased in the last day along with the price, which is a positive technical sign, and, in total, 299 325 more shares were traded than the day before. In total, 997 321 shares bought and sold for approximately $137.73 million.

Shorts 3.72% ( 2018-04-30 )
Cash 1 864.0 mill
Loans 22 309.0 mill
Beta 0.70
ROA 6.26

Trend

Rockwell Collins Inc is the upper part of a horizontal trend and normally this would pose a good selling opportunity, but a break-up through the top trend line at $138.16 will give a strong buy signal and a trend shift may be expected. Given the current horizontal trend you can expect Rockwell Collins Inc with 90% probability to be traded between $129.45 and $136.37 at the end of this period with 90% probability. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

Click here for today's Top 5 Trending Companies

Signals

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 $137.40 and $134.37. A break down below any of these levels will issue sell signals. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Tuesday May 22, 2018, which indicates further falls until a new bottom pivot has been found.

The stock had a Golden Star Signal* on Friday March 16, 2018 in the short-term chart.

* 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.

Access today's Top 5 Golden Star Companies

Relative Strength Index (RSI)

RSI14 is 88 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.

Access full RSI 14 and RSI 21 lists

Support & Resistance

Rockwell Collins Inc finds support from accumulated volume at $136.04.

Support: $136.04 Price: $138.10 Resistance: $138.25

Risk

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 $0.67 (0.48%) between high and low. For the last week, the stock has had a daily average volatility of 0.73%.

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.

Our recommended stoploss: $133.33 (-3.46%) (This stock has low daily movements and this gives low risk. The RSI14 is 88 and this increases the risk substantially. There is a sell signal from pivot top found 3 days ago.)

Overall risk:

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Evaluation

Rockwell Collins 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.

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