RISE Education Cayman Ltd Stock Analysis
Technical stock analysis for 22 January 2019
RISE Education Cayman Ltd gained 2.04% in the last trading day, rising from $8.82 to $9.00 , and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has been going up and down for this period, and there has been a 8.96% gain for the last 2 weeks. Volume fell in the last day by -17 583 shares, and in total, 40 214 shares bought and sold for approximately $361 926.00. 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 (Tuesday, 22nd Jan 2019) of the REDU stock was $9.00. This is 2.04% more than the trading day before Friday, 18th Jan 2019.
During day the stock fluctuated 8.70% from a day low at $8.28 to a day high of $9.00.
30 day high of the REDU stock price was $9.00 and low was $6.98.
90 day high was $12.00 and low was $6.70.
52 week high for the RISE Education Cayman Ltd - $18.60 and low - $6.70.
RISE Education Cayman Ltd lies the upper part of a very wide and falling 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 $9.01 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -28.04% during the next 3 months and, with 90% probability hold a price between $4.11 and $6.49 at the end of this period.
RISE Education Cayman 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 $8.56 and $8.19. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday January 08, 2019, 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 fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not.
Relative Strength Index (RSI)
The stock holds a RSI14 at 75 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 $8.26 and $8.25.
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, RISE Education Cayman Ltd finds support just below today's level at $8.26. If this is broken, then the next support from accumulated volume will be at $8.25 and $8.03.
This stock may move much during a day (volatility) and with periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved $0.72 between high and low, or 8.70%. For the last week the stock has had a daily average volatility of 7.29%.
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: $8.67 (-3.66%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 75 and this increases the risk substantially. There is a buy signal from pivot bottom found 9 days ago.)
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Several short-term signals are positive, despite the stock being in a falling trend, 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.
|REDU $9.00 $0.18(2.04%)|
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