Fri 21'st Apr 2017
Signature Bank Stock Analysis
Technical stock analysis for Fri 21'st Apr 2017
Buy candidate since 2017-04-20 Gain 0.10%
Signature Bank lies in the middle of a strong 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 -13.1% during the next 3 months and, with 90% probability hold a price between USD 114.80 and USD 126.46 at the end of this period.
A buy signal was issued from a pivot bottom point on Thursday April 13, 2017, 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. Signature Bank holds a buysignal from the short-term moving average; at the same time, however, a sales signal from the long-term average. Since the longterm average is above the short-term average there is a general salessignal in the stock. On further gains, the stock will meet resistance from the long-term moving average at USD 148.16. On a fall, the stock will find some support from the short-term average at USD 139.04. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sales signal and strengthen the general signal.
Relative Strength Index (RSI)
The stock currently holds a RSI14 at 27 and is oversold on RSI14. The stock being oversold is no guarantee for instant reaction up as some stocks may be oversold for a long time. It is important to review the previous RSI-history to get an indication of the RSI-sensitiveness.
Support & Resistance
Signature Bank finds support from accumulated volume at USD 139.95, USD 139.14, and USD 138.93. On the upside the stock meets some resistance from accumulated volume at USD 154.63, USD 146.75 and USD 155.59.
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 USD 1.76 (1.26%) between high and low. For the last week, the stock has had a daily average volatility of 3.16%.
Signature Bank is oversold on RSI14 (27). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk. Since the Signature Bank has been rising for 6 days in a row, the risk for the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stoploss: USD 132.42 (-5.48%) (This stock has low daily movements and this gives low risk. Low RSI14 is 27 which reduces the risk some. There is a buy signal from pivot bottom found 5 days ago.)
Several short-term signals are positive, despite the stock being in a strong 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. We have upgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Buy Candidate.