Buy Score Rank #1597 out of #5176
Wed 26'th Jul 2017
Merrimack Pharmaceuticals Stock Analysis
Technical stock analysis for Wed 26'th Jul 2017
Buy candidate since 2017-07-21 Gain 6.98%
Merrimack Pharmaceuticals lies the upper part of a very wide and falling 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 $1.60 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -64.23% during the next 3 months and, with 90% probability hold a price between $-0.07 and $0.57 at the end of this period.
Only positive signals in the chart today. Merrimack Pharmaceuticals holds buy signals from both short- and long-term moving averages, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down there will be some support from the lines at $1.32 and $1.33. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday July 19, 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)
RSI14 is 53 and the stock is currently not being overbought or oversold
Support & Resistance
Merrimack Pharmaceuticals finds support from accumulated volume at . On the upside the stock meets some resistance just above today's level from accumulated volume at $1.43, $1.63 and $1.52.
The stock is about to test the resistance from accumulated volume at $1.43 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
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 $0.06 between high and low, or 4.51%. For the last week, the stock has had a daily average volatility of 5.77%.
Our recommended stoploss: $1.33 (-3.95%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from pivot bottom found 5 days ago.)
Several short-term signals are positive, despite the stock being in a 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.
Your capital is at risk.