MACK - Merrimack Pharmaceuticals Tue 24'th Jan 2017
Stock analysis for Tue 24'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-24
Merrimack Pharmaceuticals Stock Analysis
Merrimack Pharmaceuticals gained 4.03% in the last trading day, rising from USD 2.98 to USD 3.10. The price has fallen in 8 of the last 10 days and is down by -15.53% for this period. Volume fell in the last day by -1.22 million shares and ,in total, 2.91 million shares bought and sold for approximately USD 9.02 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.
Merrimack Pharmaceuticals lies in the middle of a very wide and strong falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -40.0% during the next 3 months and, with 90% probability hold a price between USD 1.36 and USD 2.67 at the end of this period.
A buy signal was issued from a pivot bottom point on Monday January 23, 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. Merrimack Pharmaceuticals holds a buysignal from the short-term moving average; at the same time, however, a sales signal from the long-term average. Since the longterm average is above the short-term average there is a general salessignal in the stock. On further gains, the stock will meet resistance from the long-term moving average at USD 4.28. On a fall, the stock will find some support from the short-term average at USD 3.05. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sales signal and strengthen the general signal.
Relative Strength Index (RSI)
The stock currently holds a RSI14 at 22 and is oversold on RSI14. The stock being oversold is no guarantee for instant reaction up as some stocks may be oversold for a long time. It is important to review the previous RSI-history to get an indication of the RSI-sensitiveness.
Support & Resistance
Merrimack Pharmaceuticals finds support from accumulated volume at USD 3.05, USD 2.99, and USD 2.98. On the upside the stock meets some resistance from accumulated volume at USD 3.29, USD 3.40 and USD 3.67.
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 0.23 between high and low, or 7.96%. For the last week, the stock has had a daily average volatility of 7.43%.
Merrimack Pharmaceuticals is oversold on RSI14 (22). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stoploss: USD 3.03 (-2.26%) ( criteria: risk and position in trend)
Several short-term signals are positive and despite the stock being in a strong falling trend 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. We have upgraded our recommendation for this stock since last evaluation from a Sell Candidate to a Buy Candidate.