MCO - Moody's Corporation Mon 27'th Feb 2017
Stock analysis for Mon 27'th Feb 2017 (Updated daily)
Hold candidate since 2017-02-27
Moody's Corporation Stock Analysis
Moody's Corporation fell by -1.09% in the last day, from USD 113.29 to USD 112.05. The price has risen in 7 of the last 10 days days and is up by 3.75% over the past 2 weeks. Volume increased in the last day by 0.94 million shares, but on falling prices. This is may be an early warning and risk is increased slightly for the next couple of days. In total, 1.86 million shares bought and sold for approximately USD 208 million.
Moody's Corporation 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 USD 113.45 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 16.5% during the next 3 months and, with 90% probability hold a price between USD 121.43 and USD 132.14 at the end of this period.
Moody's Corporation holds a sales signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately USD 112.59. On a fall, the stock will find some support from the long-term average at approximately USD 104.78. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sales signal. A buy signal was issued from a pivot bottom point on Friday December 30, 2016, which indicates further gains until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
Relative Strength Index (RSI)
The stock holds a RSI14 at 79 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
Moody's Corporation finds support from accumulated volume at USD 107.06, USD 99.15, and USD 97.90. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 112.90, USD 112.87 and USD 113.56.
The stock is about to test the resistance from accumulated volume at USD 112.90 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
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 2.52 (2.27%) between high and low. For the last week, the stock has had a daily average volatility of 2.27%.
The stock is overbought on RSI14 and the RSI has been falling for the last couple of days. This together with the fact that the stock is in the upper part of the trend poses a possible good selling opportunity for the short-term trader. However, one should note that 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: USD 107.36 (-4.19%) ( criteria: risk and position in trend)
Moody's Corporation holds several positive signals, but we still don't find these to be enough for a buy-recommendation. At the current level we recommend a hold or accumulate position awaiting further development.