Embraer-Empresa Brasileira de Stock Forecast

Embraer-Empresa Brasileira de stock upgraded from Sell Candidate to Hold/Accumulate after Thursday trading session.
(Updated on Apr 25, 2024)

ERJ Signals & Forecast

The Embraer-Empresa Brasileira de stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, 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 $24.34 and $24.63. A breakdown below any of these levels will issue sell signals. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, March 25, 2024, and so far it has fallen -7.54%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

Support, Risk & Stop-loss for Embraer-Empresa Brasileira de stock

On the downside, the stock finds support just below today's level from accumulated volume at $23.48 and $21.73. There is a 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, Embraer-Empresa Brasileira de finds support just below today's level at $23.48. If this is broken, then the next support from accumulated volume will be at $21.73 and $20.85.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $1.09 between high and low, or 4.54%. For the last week, the stock has had daily average volatility of 3.05%.

Our recommended stop-loss: $24.01 (-3.94%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 22 days ago.)

Trading Expectations (ERJ) For The Upcoming Trading Day Of Friday 26th

For the upcoming trading day on Friday, 26th we expect Embraer-Empresa Brasileira de Aeronautica to open at $24.71, and during the day (based on 14 day Average True Range), to move between $24.22 and $25.78, which gives a possible trading interval of +/-$0.775 (+/-3.10%) up or down from last closing price. If Embraer-Empresa Brasileira de Aeronautica takes out the full calculated possible swing range there will be an estimated 6.20% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $25.07 (0.28%) than the support at $23.48 (6.08%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Embraer-Empresa Brasileira de Aeronautica stock A Buy?

Embraer-Empresa Brasileira de holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.

Current score: -0.139 Hold/Accumulate Upgraded

Predicted Opening Price for Embraer-Empresa Brasileira de Aeronautica of Friday, April 26, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.