ODC - Oil-Dri Corporation Of America

Industry: Specialty Chemicals Sector: Basic Materials

Hold/Accumulate
Fri 21'st Apr 2017

VOLUME
Sell
TREND
Buy
MV LONG
Buy
MV SHORT
Buy
PIVOT
Sell
MACD
Sell
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Oil-Dri Corporation Of America Stock Analysis

Technical stock analysis for Fri 21'st Apr 2017

Hold candidate since 2017-04-21

Oil-Dri Corporation Of America fell by -0.55% in the last day, from USD 39.69 to USD 39.47 The price has risen in 7 of the last 10 days and is up by 8.37% over the past 2 weeks. Volume fell in the last day along with the stock, which is actually a good sign as volume should follow the stock. In the last day, the trading volume fell by -2 322 shares and in total, 6 261 shares bought and sold for approximately USD 247 122.

Trend

Oil-Dri Corporation Of America 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 39.89 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 14.0% during the next 3 months and, with 90% probability hold a price between USD 41.55 and USD 45.48 at the end of this period.

Signals

Oil-Dri Corporation Of America 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 38.47 and USD 36.84. 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 Thursday April 20, 2017, which indicates further falls until a new bottom pivot has been found. Volume fell along with the price during the last trading day, which is technical positive. One should, however, note that this stock may have low liquidity in periods, which increases the general risk.

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 36.87 and USD 35.82. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 39.69.

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, Oil-Dri Corporation Of America finds support just below today's level at 36.87. If this is broken, then the next support from accumulated volume will be at 35.82 and 34.02. The stock is about to test the resistance at USD 39.69. If this level is broken the stock may move faster and we often see a peak at the end of such a break, posing a good sales opportunity as in 90% of the cases you will get a reaction back to the level broken before new gains. A break should be followed by increasing volume else the break may be false and despite a break of the actual resistance level the stock falls back fairly soon.

Risk

In general the stock tends to have controlled movements, but the low liquidity has increased the risk substantially.

The stock is overbought on RSI14 and lies in the upper part of the trend. Normally this will pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trendposition 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 37.88 (-4.03%) (This stock has low daily movements and this gives low risk. The RSI14 is 71 and this increases the risk substantially. There is a sell signal from pivot top found 1 days ago.)

Evaluation

Oil-Dri Corporation Of America holds several positive signals, but we still don't find these to be enough for a buy-recommendation. At the current level we recommend to hold or accumulate in this position whilst awaiting for further development.

Hold/Accumulate

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