Trex Company Inc Forecast and Stock Analysis
Technical TREX stock analysis for February 15, 2019.
|Shorts||6.44% ( 2019-01-31 )|
Trex Company Inc fell by -2.02% in the last day from $78.34 to $76.76 The price has risen in 7 of the last 10 days and is up by 9.24% over the past 2 weeks. Volume has increased in the last day by 1.05 million shares, but on falling prices. This may be an early warning and the risk will be increased slightly for the next couple of days. In total, 1.96 million shares bought and sold for approximately $150.43 million.
Close price at the end of the last trading day (Friday, 15th Feb 2019) of the TREX stock was $76.76. This is 2.02% less than the trading day before Thursday, 14th Feb 2019.
During day the stock fluctuated 11.06% from a day low at $70.50 to a day high of $78.30.
30 day high of the TREX stock price was $79.38 and low was $65.14.
90 day high was $79.38 and low was $53.48.
52 week high for the Trex Company Inc - $129.75 and low - $50.88.
Trex Company Inc 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 $78.83 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 26.18% during the next 3 months and, with 90% probability hold a price between $80.03 and $99.47 at the end of this period.
There are mixed signals in the stock today. A sales signal was issued from a pivot top point on Thursday February 14, 2019, which indicates further falls until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely. Trex Company Inc 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 $75.77 and $68.28. A break down below any of these levels will issue sell signals.
Relative Strength Index (RSI)
RSI14 is 85 and the stock is extremely overbought on RSI14, so further reactions should be expected. Some stocks may have a long and hard correction after reaching so high an RSI, but not in all cases. However, the short-term risk has increased drastically and larger movements in the next couple of days can be expected.
Support & Resistance
Trex Company Inc finds support from accumulated volume at $75.42.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $7.80 between high and low, or 11.06%. For the last week, the stock has had a daily average volatility of 4.60%.
The stock is overbought on RSI14 and lies in the upper part of the trend. Normally this will pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stoploss: $73.90 (-3.73%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 85 and this increases the risk substantially. There is a sell signal from pivot top found 1 days ago.)
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Trex Company Inc holds several positive signals, but we still don't find these to be enough for a buy-recommendation. At the current level we recommend to hold or accumulate in this position whilst awaiting for further development. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Strong Buy Candidate to a Hold/Accumulate.