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:

Bollinger Bottleneck Buy Pattern 1
Bollinger Bottleneck Buy Pattern 2
Bollinger Bottleneck Sell Pattern

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

RSI low/high Values: [ 20 - 80 ]
* StockInvest.us uses dynamically calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behavior.
AI Analysis of SAV.L
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Red day on Wednesday for Savannah Resources Plc
(Updated on Mar 27, 2024)

Buy or Hold candidate since Feb 29, 2024 Gain 67.50% PDF

The Savannah Resources Plc stock price fell by -2.90% on the last day (Wednesday, 27th Mar 2024) from £3.45 to £3.35. During the last trading day the stock fluctuated 7.53% from a day low at £3.26 to a day high of £3.50. The price has risen in 5 of the last 10 days and is up by 24.07% over the past 2 weeks. Volume has increased on the last day by 2 million 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, 3 million shares were bought and sold for approximately £10.50 million.

The stock lies in the upper part of a very wide and strong rising trend in the short term, and this may 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 £3.46 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 36.78% during the next 3 months and, with a 90% probability hold a price between £2.67 and £4.74 at the end of this 3-month period.

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SAV.L Signals & Forecast

The Savannah Resources Plc stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, 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 £3.31 and £2.28. A breakdown below any of these levels will issue sell signals. 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 Tuesday, March 26, 2024, and so far it has fallen -2.90%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

Support, Risk & Stop-loss for Savannah Resources Plc stock

Savannah Resources Plc finds support from accumulated volume at £3.30 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 very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved £0.245 between high and low, or 7.53%. For the last week, the stock has had daily average volatility of 8.30%.

The Savannah Resources Plc stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position 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 stop-loss: £3.24 (-3.38%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 86 and this increases the risk substantially. There is a sell signal from a pivot top found 1 day ago.)

Trading Expectations (SAV.L) For The Upcoming Trading Day Of Thursday 28th

For the upcoming trading day on Thursday, 28th we expect Savannah Resources Plc to open at £3.37, and during the day (based on 14 day Average True Range), to move between £3.09 and £3.61, which gives a possible trading interval of +/-£0.259 (+/-7.74%) up or down from last closing price. If Savannah Resources Plc takes out the full calculated possible swing range there will be an estimated 15.48% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at £3.30 (1.49%) than the resistance at £3.45 (2.99%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Savannah Resources Plc stock A Buy?

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 Savannah Resources Plc stock to perform well in the short-term.

Current score: 2.400 Buy Candidate Unchanged

Predicted Opening Price for Savannah Resources Plc of Thursday, March 28, 2024

Fair opening price March 28, 2024 Current price
£3.37 ( 0.547%) £3.35

The predicted opening price is based on yesterday's movements between high, low, and closing price.

Trading levels for SAV.L

Fibonacci Support & Resistance Levels

Level Price
Resistance R3 3.61 7.86 %
R2 3.52 5.07 %
R1 3.46 3.34 %
Current price: 3.35
Support S1 3.27 -2.25 %
S2 3.22 -3.97 %
S3 3.12 -6.77 %

Accumulated Volume Support & Resistance Levels

Level Price
Resistance R3 0 .
R2 0 .
R1 3.45 2.99 %
Current price 3.35
Support S1 3.30 -1.49%
S2 3.20 -4.48%
S3 2.80 -16.42%

FAQ

What is the symbol for Savannah Resources Plc Stock and on which exchange is it traded?
The symbol for Savannah Resources Plc is SAV.L and it is traded on the XLON (London Stock Exchange).

Should I buy or sell Savannah Resources Plc Stock?
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 Savannah Resources Plc stock to perform well in the short-term.

How to buy Savannah Resources Plc Stock?
Savannah Resources Plc Stock can be purchased through just about any brokerage firm, including online brokerage services.
Click here for our free guide on how to buy Savannah Resources Plc Stock.

What's the current price of Savannah Resources Plc Stock?
As of the end of day on the 2024-03-27, the price of an Savannah Resources Plc (SAV.L) share was £3.35.

What is the 52-week high and low for Savannah Resources Plc Stock?
The 52-week high for Savannah Resources Plc Stock is £5.10 and the 52-week low is £1.50.

What is the market capitalization of Savannah Resources Plc Stock?
As of the 2024-03-27, the market capitalization of Savannah Resources Plc is 61.243M.

When is the next earnings date for Savannah Resources Plc?
The upcoming earnings date for Savannah Resources Plc is Apr 03, 2024.
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About Savannah Resources Plc

Savannah Resources Plc Savannah Resources Plc explores for and develops lithium properties in Portugal. It holds interest in the Barroso lithium project located in northern Portugal. The company was formerly known as African Mining and Exploration plc and changed its name to Savannah Resources Plc in September 2013. Savannah Resources Plc was incorporated in 2010 and is based in London, the United Kingdom.... SAV.L Profile

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