KTWO - K2M Group Holdings

Industry: Medical Appliances & Equipment Sector: Healthcare | Exchange: NASDAQ

Buy Candidate
Buy Score Rank #1652 out of #5176
Wed 26'th Jul 2017

PERIOD COVERED
2017-04-27 - 2017-07-26
CHANGE
-1.32%
PRICE
$25.37
VOLUME
Sell
TREND

MV LONG
Buy

MV SHORT
Buy

PIVOT
Sell

MACD
Buy

BOLLINGER
Buy
Request Prediction
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K2M Group Holdings Stock Analysis

Technical stock analysis for Wed 26'th Jul 2017

Buy candidate since 2017-07-13 Gain 3.89%

K2M Group Holdings fell by -1.32% in the last day from $25.71 to $25.37 The price has risen in 7 of the last 10 days and is up by 3.51% over the past 2 weeks. 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 -122 914 shares and in total 309 475 shares bought and sold for approximately $7.85 million.

Trend

K2M Group Holdings lies in the upper part of a strong rising 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 $25.77 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 15.42% during the next 3 months and, with 90% probability hold a price between $27.39 and $29.74 at the end of this period.

Signals

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 $25.16 and $23.91. 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 Tuesday July 25, 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 86 and the stock is extremely overbought on RSI14, so further reactions should be expected. Some stocks may have a long and hard correction after reaching so high an RSI, but not in all cases. However, the short-term risk has increased drastically and larger movements in the next couple of days can be expected.

Support & Resistance

On the downside, the stock finds support just below today's level from accumulated volume at $23.92 and $22.84. On the upside the stock meets some resistance just above today's level from accumulated volume at $25.71 and $25.71.

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, K2M Group Holdings finds support just below today's level at $23.92. If this is broken, then the next support from accumulated volume will be at $22.84 and $22.70. The stock is about to test the resistance from accumulated volume at $25.71 and this may cause the stock to take a minor break or get into a more sideways move for a few days.

Support: $23.92 Price: $25.37 Resistance: $25.71
S: $23.92 Price: $25.37 R: $25.71

Risk

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 $0.54 (2.14%) between high and low. For the last week, the stock has had a daily average volatility of 2.54%.

The stock is overbought on RSI14 and lies in the upper part of the trend. Normally this will pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stoploss: $24.32 (-4.14%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 86 and this increases the risk substantially. There is a sell signal from pivot top found 1 days ago.)

Overall risk:

Very Low Low Medium High Very High

Overall risk:

           

Evaluation

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. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Strong Buy Candidate to a Buy Candidate.

Buy Candidate

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