Redwood Trust Inc Stock Forecast
Redwood Trust Inc stock downgraded from Hold/Accumulate to Sell Candidate after Wednesday trading session.
(Updated on Apr 24, 2024)
The Redwood Trust Inc stock price fell by -1.71% on the last day (Wednesday, 24th Apr 2024) from $5.86 to $5.76. During the last trading day the stock fluctuated 1.74% from a day low at $5.74 to a day high of $5.84. The price has been going up and down for this period, and there has been a -3.19% loss for the last 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -238 thousand shares and in total, 573 thousand shares were bought and sold for approximately $3.30 million.
The stock lies in the middle of a 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 -13.90% during the next 3 months and, with a 90% probability hold a price between $4.64 and $5.32 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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RWT Signals & Forecast
A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 4.92%. Further rise is indicated 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. The Redwood Trust Inc stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at $6.03. On a fall, the stock will find some support from the short-term average at $5.66. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss for Redwood Trust Inc stock
Redwood Trust Inc finds support from accumulated volume at $5.73 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.1000 between high and low, or 1.74%. For the last week, the stock has had daily average volatility of 2.29%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (RWT) For The Upcoming Trading Day Of Thursday 25th
For the upcoming trading day on Thursday, 25th we expect Redwood Trust Inc to open at $5.78, and during the day (based on 14 day Average True Range), to move between $5.59 and $5.93, which gives a possible trading interval of +/-$0.167 (+/-2.90%) up or down from last closing price. If Redwood Trust Inc takes out the full calculated possible swing range there will be an estimated 5.80% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $5.73 (0.52%) than the resistance at $6.03 (4.69%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Earnings coming up
Redwood Trust Inc will release earnings AMC on Tuesday, April 30, 2024.The consensus among the analysts for the expected earnings (EPS) is $0.0900. We will update the financials statements for Redwood Trust Inc, that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 2.97% in the first trading day after earnings release.
Is Redwood Trust Inc stock A Buy?
Redwood Trust Inc 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 analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.
Current score: -3.438 Sell Candidate Downgraded
Predicted Opening Price for Redwood Trust Inc of Thursday, April 25, 2024
| Fair opening price April 25, 2024 | Current price |
|---|---|
| $5.78 ( 0.347%) | $5.76 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for RWT
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 5.88 | 2.08 % | |
| R2 | 5.84 | 1.42 % | ||
| R1 | 5.82 | 1.01 % | ||
| Current price: | 5.76 | |||
| Support | S1 | 5.74 | -0.316 % | |
| S2 | 5.72 | -0.726 % | ||
| S3 | 5.68 | -1.39 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 6.19 | 7.47 % | |
| R2 | 6.14 | 6.60 % | ||
| R1 | 6.03 | 4.69 % | ||
| Current price | 5.76 | |||
| Support | S1 | 5.73 | -0.521% | |
| S2 | 5.59 | -2.95% | ||
| S3 | 5.49 | -4.69% |
RWT Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Mar 07, 2024 | Mar 20, 2024 | Mar 28, 2024 | $0.160 | 2.51% |
| 2 | Dec 07, 2023 | Dec 19, 2023 | Dec 28, 2023 | $0.160 | 2.11% |
| 3 | Sep 12, 2023 | Sep 21, 2023 | Sep 29, 2023 | $0.160 | 2.24% |
| 4 | Jun 13, 2023 | Jun 22, 2023 | Jun 30, 2023 | $0.160 | 2.51% |
| 5 | Mar 14, 2023 | Mar 23, 2023 | Mar 31, 2023 | $0.230 | 3.41% |
FAQ
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