ETRM - EnteroMedics Inc. Mon 27'th Feb 2017
Stock analysis for Mon 27'th Feb 2017 (Updated daily)
Sell candidate since 2017-02-24
EnteroMedics Inc. Stock Analysis
EnteroMedics Inc. fell by -2.84% in the last day, from USD 5.98 to USD 5.81. , and has now fallen 8 day in a row The price has fallen in 9 of the last 10 days and is down by -25.99% for this period. Volume fell in the last day along with the stock, which is actually a good sign as volume should follow the stock. In the last day the trading volume fell by -160 844 shares and in total, 588 717 shares bought and sold for approx. USD 3.42 million.
EnteroMedics Inc. has broken the very wide and strong rising short-term trend down. This signalize a slower rising rate, but may also be an early warning about a possible trend shift. Due to trend being broken there will now be resistance at the bottom line of the trend at (USD 7.61 ). A reaction back to this level may hold a second chance to get out before further falls.
There are few to none technical positive signals at the moment. EnteroMedics Inc. 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 6.48 and USD 8.72. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Wednesday February 15, 2017, which indicates further falls until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Relative Strength Index (RSI)
The stock currently holds a RSI14 at 29 and is oversold on RSI14. The stock being oversold is no guarantee for instant reaction up as some stocks may be oversold for a long time. It is important to review the previous RSI-history to get an indication of the RSI-sensitiveness.
Support & Resistance
EnteroMedics Inc. finds support from accumulated volume at USD 5.62, USD 4.90. On the upside the stock meets some resistance from accumulated volume at USD 7.20, USD 6.16 and USD 6.96.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved USD 0.39 between high and low, or 7.01%. For the last week, the stock has had a daily average volatility of 11.01%.
EnteroMedics Inc. is oversold on RSI14 (29). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
The stockstock holds several negative signals and despite the positive trend we believe EnteroMedics Inc. to perform weak in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Sell Candidate.