Dr Reddy's Laboratories Ltd Forecast and Stock Analysis
Technical RDY stock analysis for March 18, 2019.
|Shorts||5.91% ( 2019-02-28 )|
Dr Reddy's Laboratories Ltd gained 0.54% in the last trading day, rising from $38.87 to $39.08 , and has now gained 7 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. The price has risen in 8 of the last 10 days and is up by 4.69% over the past 2 weeks. Volume fell in the last day by -96 858 shares, and in total, 94 803 shares bought and sold for approximately $3.70 million. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Close price at the end of the last trading day (Monday, 18th Mar 2019) of the RDY stock was $39.08. This is 0.54% more than the trading day before Friday, 15th Mar 2019.
During day the stock fluctuated 0.85% from a day low at $38.96 to a day high of $39.29.
30 day high of the RDY stock price was $39.29 and low was $35.60.
90 day high was $40.20 and low was $35.50.
52 week high for the Dr Reddy's Laboratories Ltd - $40.20 and low - $28.13.
Dr Reddy's Laboratories Ltd lies in the middle of a wide and weak 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 2.71% during the next 3 months and, with 90% probability hold a price between $37.07 and $41.45 at the end of this period.
Only positive signals in the chart today. Dr Reddy's Laboratories Ltd 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 $38.48 and $37.88. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday March 08, 2019, 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 67 and the stock is currently not being overbought or oversold
Support & Resistance
Dr Reddy's Laboratories Ltd finds support from accumulated volume at $37.65.
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 $0.33 (0.85%) between high and low. For the last week, the stock has had a daily average volatility of 1.09%.
Since the Dr Reddy's Laboratories Ltd has been rising for 7 days in a row, the risk for the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stoploss: $37.40 (-4.30%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 6 days ago.)
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Evaluation: Buy Candidate
Several short-term signals, along with a general good trend, are positive and 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.