LECO - Lincoln Electric Holdings Tue 24'th Jan 2017
Strong Buy Candidate
Stock analysis for Tue 24'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-10
Lincoln Electric Holdings Stock Analysis
Lincoln Electric Holdings gained 3.20% in the last trading day, rising from USD 80.67 to USD 83.25. , 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 7 of the last 10 days days and is up by 6.73% over the past 2 weeks. Volume also increased in the last day along with the price, which is a positive technical sign, and, in total, 82 755 more shares were traded than the day before. In total, 415 732 shares bought and sold for approximately USD 34.61 million.
Lincoln Electric Holdings 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 19.8% during the next 3 months and, with 90% probability hold a price between USD 92.13 and USD 107.18 at the end of this period.
Only positive signals in the chart today. Lincoln Electric 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 81.05 and USD 79.16. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday December 28, 2016, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
The stock holds a RSI14 at 77 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
On the downside, the stock finds support just below today's level from accumulated volume at USD 78.54 and USD 74.80. 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.
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, Lincoln Electric Holdings finds support just below today's level at 78.54. If this is broken, then the next support from accumulated volume will be at 74.80 and 74.76.
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 3.04 (3.78%) between high and low. For the last week, the stock has had a daily average volatility of 1.96%.
Our recommended stoploss: USD 79.90 (-4.02%) ( criteria: risk and position in trend)
Lincoln Electric Holdings holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at current levels and are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Buy Candidate to a Strong Buy Candidate.