Fri 21'st Apr 2017
Ophthotech Corporation Stock Analysis
Technical stock analysis for Fri 21'st Apr 2017
Sell candidate since 2017-04-13 Loss -6.16%
Ophthotech Corporation 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 -36.7% during the next 3 months and, with 90% probability hold a price between USD 1.53 and USD 2.14 at the end of this period.
There are mixed signals in the stock today. Ophthotech Corporation holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at USD 2.88 and USD 3.36. A break-up above any of these levels will issue buy signals. 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. A buy signal was issued from a pivot bottom point on Wednesday March 22, 2017, which indicates further gains until a new top pivot has been found.
Relative Strength Index (RSI)
RSI14 is 4 and the stock is extremely oversold on RSI14, but some stocks may continue to fall despite the high chance of a correction up. The low RSI lowers the general risk and the stock should be considered if other technical requirements like liquidity and risk-reward are meet.
Support & Resistance
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days. On the upside the stock meets some resistance from accumulated volume at USD 2.92, USD 3.18 and USD 3.00.
This stock may move much during a day (volatility) and with periodic low trading volume this stockstock is considered to be "high risk". During the last day, the stock moved USD 0.11 between high and low, or 4.06%. For the last week the stock has had a daily average volatility of 5.74%.
Ophthotech Corporation is overbought on RSI14 (4). Some stocks may go long and hard while being overbought on RSI, but overbought increases the general risk as higher volatility could be expected, and at some level the stock will have a reaction back to gain new strength.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
Ophthotech Corporation holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Sell Candidate.