Fri 21'st Apr 2017
K2M Group Holdings Stock Analysis
Technical stock analysis for Fri 21'st Apr 2017
Sell candidate since 2017-04-21
K2M Group Holdings is the upper part of a wide and horizontal trend and normally this would pose a good selling opportunity, but a break-up through the top trend line at USD 21.33 will give a strong buy signal and a trend shift may be expected. Given the current horizontal trend you can expect K2M Group Holdings with 90% probability to be traded between USD 18.24 and USD 20.95 at the end of this period with 90% probability. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
K2M Group Holdings 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 USD 20.95 and USD 20.22. A break down below any of these levels will issue sell signals. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Thursday April 20, 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)
RSI14 is 58 and the stock is currently not being overbought or oversold
Support & Resistance
K2M Group Holdings finds support from accumulated volume at USD 20.51, USD 20.01, and USD 19.75. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 21.28, USD 21.30 and USD 21.54.
The stock is about to test the resistance from accumulated volume at USD 21.28 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 USD 0.40 (1.90%) between high and low. For the last week, the stock has had a daily average volatility of 2.26%.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
K2M Group Holdings holds several negative signals and we believe that it will still perform weakly 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.