Thu 19'th Oct 2017
INVESCO MORTGAGE CAPITAL INC Stock Analysis
Technical stock analysis for Thu 19'th Oct 2017
Buy candidate since 2017-10-06 Gain 4.66%
INVESCO MORTGAGE CAPITAL INC has broken the narrow and weak 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 $17.72, a level that may pose a second chance to hit a runner. According to fan-theory $18.48 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. INVESCO MORTGAGE CAPITAL 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 $17.67 and $17.16. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday September 26, 2017, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely.
* 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 82 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
INVESCO MORTGAGE CAPITAL INC finds support from accumulated volume at $17.10. 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.
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 $0.16 (0.90%) between high and low. For the last week, the stock has had a daily average volatility of 0.79%.
The stock is extremely overbought on RSI14 (82). 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. Since the INVESCO MORTGAGE CAPITAL INC has been rising for 10 days in a row, the risk for the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stoploss: $17.12 (-4.64%) (This stock has low daily movements and this gives low risk. The RSI14 is 82 and this increases the risk substantially. There is a buy signal from pivot bottom found 17 days ago.)
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INVESCO MORTGAGE CAPITAL INC holds several positive signals and has broken the weak 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.
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