MTOR - Meritor Inc Thu 23'rd Feb 2017
Stock analysis for Thu 23'rd Feb 2017 (Updated daily)
Hold candidate since 2017-02-22
Meritor Inc Stock Analysis
Meritor Inc fell by -2.43% in the last day, from USD 16.49 to USD 16.09. , and has now fallen 3 day in a row The price has fallen in 6 of the last 10 days , but is still up by 3.87% over the past 2 weeks. Volume increased in the last day by 0.13 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, 1.12 million shares bought and sold for approximately USD 18.10 million.
Meritor Inc 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 29.9% during the next 3 months and, with 90% probability hold a price between USD 19.16 and USD 21.89 at the end of this period.
Meritor Inc 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 16.05 and USD 14.72. A break down below any of these levels will issue sell signals. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Tuesday February 21, 2017, which indicates further falls until a new bottom pivot has been found. 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 71 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 14.99 and USD 12.94. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 16.51 and USD 16.49.
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, Meritor Inc finds support just below today's level at 14.99. If this is broken, then the next support from accumulated volume will be at 12.94 and 12.63. The stock is about to test the resistance from accumulated volume at USD 16.51 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 USD 0.95 between high and low, or 6.02%. For the last week, the stock has had a daily average volatility of 3.61%.
Our recommended stoploss: USD 15.52 (-3.54%) ( criteria: risk and position in trend)
Meritor Inc 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.