Tue 11'th Dec 2018
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)
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.
ING Group NV Stock Analysis
Technical stock analysis for Tue 11'th Dec 2018
ING Group NV gained 0.48% in the last trading day, rising from $25.11 to $25.23 , and has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has risen in 6 of the last 10 days and is up by 0.68% over the past 2 weeks. Volume fell in the last day by -2 785 shares, and in total, 41 641 shares bought and sold for approximately $1.05 million. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
ING Group NV lies the upper part of a narrow and falling trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at $25.38 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -2.14% during the next 3 months and, with 90% probability hold a price between $24.06 and $24.83 at the end of this period.
ING Group NV holds buy signals from both short- and long-term moving averages, 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 $25.12 and $25.19. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday November 20, 2018, 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. 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 63 and the stock is currently not being overbought or oversold
Support & Resistance
ING Group NV finds support from accumulated volume at $25.11.
In general the stock tends to have controlled movements, but the low liquidity has increased the risk substantially.
Our recommended stoploss: $23.94 (-5.12%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 13 days ago.)
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ING Group NV 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. We have upgraded our recommendation for this stock since last evaluation from a Sell Candidate to a Hold/Accumulate.
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