TransAlta Corporation Stock Forecast
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:
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
TransAlta Corporation stock downgraded to Hold/Accumulate
(Updated on Apr 24, 2024)
The TransAlta Corporation stock price gained 1.53% on the last trading day (Wednesday, 24th Apr 2024), rising from $6.52 to $6.62. It has now gained 8 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 2.31% from a day low at $6.49 to a day high of $6.64. The price has risen in 9 of the last 10 days and is up by 7.82% over the past 2 weeks. Volume fell on the last day by -203 thousand shares and in total, 630 thousand shares were bought and sold for approximately $4.17 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
Given the current short-term trend, the stock is expected to fall -14.39% during the next 3 months and, with a 90% probability hold a price between $5.07 and $5.67 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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TAC Signals & Forecast
The TransAlta Corporation stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $6.41 and $6.42. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 12, 2024, and so far it has risen 9.24%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for TransAlta Corporation stock
TransAlta Corporation finds support from accumulated volume at $6.45 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $0.150 (2.31%) between high and low. For the last week, the stock has had daily average volatility of 2.68%.
Since the TransAlta Corporation has been rising for 8 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.
Our recommended stop-loss: $6.40 (-3.32%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 8 days ago.)
Trading Expectations (TAC) For The Upcoming Trading Day Of Thursday 25th
For the upcoming trading day on Thursday, 25th we expect TransAlta Corporation to open at $6.58, and during the day (based on 14 day Average True Range), to move between $6.45 and $6.79, which gives a possible trading interval of +/-$0.173 (+/-2.61%) up or down from last closing price. If TransAlta Corporation takes out the full calculated possible swing range there will be an estimated 5.23% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $6.45 (2.57%) than the resistance at $6.87 (3.78%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is TransAlta Corporation stock A Buy?
TransAlta Corporation holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.000 Hold/Accumulate Downgraded
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for TransAlta Corporation of Thursday, April 25, 2024
| Fair opening price April 25, 2024 | Current price |
|---|---|
| $6.58 ( 0.554%) | $6.62 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for TAC
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 6.73 | 1.71 % | |
| R2 | 6.68 | 0.85 % | ||
| R1 | 6.64 | 0.312 % | ||
| Current price: | 6.62 | |||
| Support | S1 | 6.53 | -1.42 % | |
| S2 | 6.49 | -1.95 % | ||
| S3 | 6.43 | -2.82 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 7.33 | 10.73 % | |
| R2 | 7.01 | 5.89 % | ||
| R1 | 6.87 | 3.78 % | ||
| Current price | 6.62 | |||
| Support | S1 | 6.45 | -2.57% | |
| S2 | 6.43 | -2.87% | ||
| S3 | 6.31 | -4.68% |
TAC Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Nov 22, 2023 | Feb 29, 2024 | Apr 01, 2024 | $0.0437 | 0.682% |
| 2 | Oct 30, 2023 | Nov 30, 2023 | Jan 01, 2024 | $0.0400 | 0.481% |
| 3 | Jul 27, 2023 | Aug 31, 2023 | Oct 01, 2023 | $0.0420 | 0.483% |
| 4 | Apr 27, 2023 | May 31, 2023 | Jul 01, 2023 | $0.0400 | 0.427% |
| 5 | Dec 12, 2022 | Feb 28, 2023 | Apr 01, 2023 | $0.0410 | 0.469% |
FAQ
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