LILA - Liberty Global plc Tue 21'st Feb 2017
Strong Buy Candidate
Stock analysis for Tue 21'st Feb 2017 (Updated daily)
Buy candidate since 2017-02-16
Liberty Global plc Stock Analysis
Liberty Global plc gained 2.32% in the last trading day, rising from USD 26.73 to USD 27.35. , 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 been going up and down for this period, and there has been a 17.28% gain for the last 2 weeks. Volume fell in the last day by -68 521 shares and ,in total, 709 338 shares bought and sold for approximately USD 19.40 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Liberty Global plc has broken the narrow and strong 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 USD 24.45, a level that may pose a second chance to hit a runner. According to fan-theory USD 26.63 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. Liberty Global plc 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 24.37 and USD 23.19. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday February 15, 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)
The stock holds a RSI14 at 76 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 25.89 and USD 22.06. 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, Liberty Global plc finds support just below today's level at 25.89. If this is broken, then the next support from accumulated volume will be at 22.06 and 21.18.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved USD 1.61 between high and low, or 6.08%. For the last week, the stock has had a daily average volatility of 6.61%.
The stock is extremely overbought on RSI14 (76). 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.
Our recommended stoploss: USD 26.14 (-4.42%) ( Criterias: risk and break of trend)
Several short-term signals, are positive and the stock has broken the rising trend up, which indicates even stronger rising rate. 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.