Thu 19'th Oct 2017
Steven Madden Stock Analysis
Technical stock analysis for Thu 19'th Oct 2017
Hold candidate since 2017-10-17 Loss -0.73%
Steven Madden is the lower part of a horizontal trend on short term, and normally this would pose a good buying opportunity, though a break down through the bottom trend line at $40.62 will give a strong sales signal and a trend shift may be expected. Given the current horizontal trend you can expect Steven Madden with 90% probability to be traded between $41.37 and $44.53 at the end of this period with 90% probability. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
A buy signal was issued from a pivot bottom point on Thursday October 12, 2017, which indicates further gains 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. Steven Madden holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at $41.02 and $42.11. A break-up above any of these levels will issue buy signals. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Relative Strength Index (RSI)
The stock currently holds a RSI14 at 26 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
Steven Madden finds support from accumulated volume at $40.75. On the upside the stock meets some resistance just above today's level from accumulated volume at $41.80, $42.40 and $42.60.
The stock is about to test the resistance from accumulated volume at $41.80 and this may cause the stock to take a minor break or get into a more sideways move for a few 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 $0.42 (1.03%) between high and low. For the last week, the stock has had a daily average volatility of 1.56%.
Steven Madden is oversold on RSI14 (26). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stoploss: $38.13 (-6.65%) (This stock has low daily movements and this gives low risk. Low RSI14 is 26 which reduces the risk some. There is a buy signal from pivot bottom found 5 days ago.)
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Steven Madden holds several negative signals and this should give a sell recommendation, but due to the general chance for a turnaround situation we recommend to hold or accumulate whilst awaiting for further development.
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