Thu 19'th Oct 2017
Kadant Inc Stock Analysis
Technical stock analysis for Thu 19'th Oct 2017
Buy candidate since 2017-10-04 Gain 4.04%
Kadant Inc lies in the middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 28.08% during the next 3 months and, with 90% probability hold a price between $124.95 and $139.35 at the end of this period.
Only positive signals in the chart today. Kadant 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 $99.81 and $94.91. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday October 17, 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.
Relative Strength Index (RSI)
RSI14 is 57 and the stock is currently not being overbought or oversold
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $94.30 and $88.30. On the upside the stock meets some resistance just above today's level from accumulated volume at $100.55.
There is 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, Kadant Inc finds support just below today's level at $94.30. If this is broken, then the next support from accumulated volume will be at $88.30 and $77.15. The stock is about to test the resistance from accumulated volume at $100.55 and this may cause the stock to take a minor break or get into a more sideways move for a few 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 $1.55 (1.57%) between high and low. For the last week, the stock has had a daily average volatility of 1.70%.
Our recommended stoploss: $95.48 (-4.99%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 2 days ago.)
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Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term.
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