Wed 12'th Dec 2018
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, which purpose is to provide a relative definition of high and low. This defintion is used to identify buy and sell signals and have 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. Get-A-Graph 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)
Bottlenecks in bandwidth indicates a upcoming change. Break up through the moving average line, or continuously movements above the moving average line indicates a break up, and vice versa downwards.
State Auto Financial Corporation Stock Analysis
Technical stock analysis for Wed 12'th Dec 2018
State Auto Financial Corporation gained 2.28% in the last trading day, rising from $34.15 to $34.93 The price has fallen in 6 of the last 10 days , but is still up by 5.88% over the past 2 weeks. Volume has increased in the last day along with the price, which is a positive technical sign, and, in total, 21 096 more shares were traded than the day before. In total, 43 640 shares bought and sold for approximately $1.52 million.
State Auto Financial Corporation lies in the upper part of a wide and strong rising trend in the short term, and this will 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 $35.69 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 15.06% during the next 3 months and, with 90% probability hold a price between $36.60 and $41.06 at the end of this period.
Only positive signals in the chart today. State Auto Financial Corporation 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 $34.50 and $33.09. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday December 11, 2018, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
RSI14 is 63 and the stock is currently not being overbought or oversold
Support & Resistance
State Auto Financial Corporation finds support from accumulated volume at $33.41.
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 $1.02 (2.99%) between high and low. For the last week, the stock has had a daily average volatility of 3.18%.
Our recommended stoploss: $33.14 (-5.11%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 1 days ago.)
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State Auto Financial Corporation holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Buy Candidate to a Strong Buy Candidate.
|STFC $34.93 $0.78(2.28%)|
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