Fri 19'th Jan 2018
Signature Bank Stock Analysis
Technical stock analysis for Fri 19'th Jan 2018
|Shorts||3.03% ( 2017-12-29 )|
Signature Bank has broken the strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $148.82, a level that may pose a second chance to hit a runner. According to fan-theory $159.32 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.
Only positive signals in the chart today. Signature Bank 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 $149.86 and $140.28. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday January 08, 2018, 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 88 and the stock is extremely overbought on RSI14, but may also ontinue to gain. Some stocks see their best performance while being overbought, but very seldom does RSI remain so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.
Support & Resistance
Signature Bank finds support from accumulated volume at $153.44. There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well during the next couple of days.
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 $6.54 (4.26%) between high and low. For the last week, the stock has had a daily average volatility of 3.05%.
The stock is extremely overbought on RSI14 (88). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stoploss: $154.83 (-3.13%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 88 and this increases the risk substantially. There is a buy signal from pivot bottom found 8 days ago.)
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Several short-term signals are positive and the stock has broke the rising trend up, which indicates an even stronger rising rate. 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 period.
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