Reeds Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Red day on Friday for Reeds
(Updated on Apr 19, 2024)
The Reeds stock price fell by -3.23% on the last day (Friday, 19th Apr 2024) from $1.89 to $1.83. During the last trading day the stock fluctuated 2.46% from a day low at $1.83 to a day high of $1.88. The price has risen in 6 of the last 10 days and is up by 17.31% over the past 2 weeks. Volume has increased on the last day by 544 shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 882 shares were bought and sold for approximately $1.61 thousand.
The stock lies in the middle of a very wide and 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 -8.11% during the next 3 months and, with a 90% probability hold a price between $1.33 and $2.08 at the end of this 3-month period.
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REED Signals & Forecast
The Reeds stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately $1.85. On a fall, the stock will find some support from the long-term average at approximately $1.67. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, April 15, 2024, and so far it has fallen -19.74%. Further fall is indicated until a new bottom pivot has been found. Reeds gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for Reeds stock
Reeds finds support from accumulated volume at $1.78 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock may move much during the 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 $0.0450 between high and low, or 2.46%. For the last week, the stock has had daily average volatility of 13.63%.
Our recommended stop-loss: $1.74 (-4.84%) (This stock has high daily movements and this gives high risk. There is a sell signal from a pivot top found 4 days ago.)
Trading Expectations (REED) For The Upcoming Trading Day Of Monday 22nd
For the upcoming trading day on Monday, 22nd we expect Reeds to open at $1.85, and during the day (based on 14 day Average True Range), to move between $1.64 and $2.02, which gives a possible trading interval of +/-$0.191 (+/-10.45%) up or down from last closing price. If Reeds takes out the full calculated possible swing range there will be an estimated 20.90% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $1.78 (2.73%) than the resistance at $1.91 (4.10%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is Reeds stock A Buy?
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 stock to perform well in the short-term.
Current score: 1.427 Buy Candidate Unchanged
Predicted Opening Price for Reeds of Monday, April 22, 2024
| Fair opening price April 22, 2024 | Current price |
|---|---|
| $1.85 ( 0.82%) | $1.83 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for REED
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 1.89 | 3.28 % | |
| R2 | 1.87 | 2.34 % | ||
| R1 | 1.86 | 1.76 % | ||
| Current price: | 1.83 | |||
| Support | S1 | 1.83 | -0.120 % | |
| S2 | 1.82 | -0.700 % | ||
| S3 | 1.80 | -1.64 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 2.28 | 24.59 % | |
| R2 | 1.97 | 7.65 % | ||
| R1 | 1.91 | 4.10 % | ||
| Current price | 1.83 | |||
| Support | S1 | 1.78 | -2.73% | |
| S2 | 1.63 | -10.93% | ||
| S3 | 1.59 | -13.39% |
FAQ
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