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:

Bollinger Bottleneck Buy Pattern 1
Bollinger Bottleneck Buy Pattern 2
Bollinger Bottleneck Sell Pattern

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

RSI low/high Values: [ 25 - 75 ]
* StockInvest.us uses dynamically calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behavior.
AI Analysis of WSO
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Watsco Inc stock price up 2.36% on Wednesday
(Updated on Mar 27, 2024)

Buy or Hold candidate since Mar 15, 2024 Gain 7.44% PDF

The Watsco Inc stock price gained 2.36% on the last trading day (Wednesday, 27th Mar 2024), rising from $424.25 to $434.28. During the last trading day the stock fluctuated 1.90% from a day low at $426.20 to a day high of $434.28. The price has risen in 7 of the last 10 days and is up by 7.83% over the past 2 weeks. Volume fell on the last day by -131 thousand shares and in total, 219 thousand shares were bought and sold for approximately $95.13 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.

The stockis at the upper part of a wide and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $439.78 will give a strong buy signal and a trend shift could be expected. Given the current horizontal trend, you can expect Watsco Inc stock with a 90% probability to be traded between $385.33 and $445.56 at the end of this 3-month period. 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 top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

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WSO Signals & Forecast

The Watsco Inc stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, 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 $429.38 and $402.21. A breakdown below any of these levels will issue sell signals. 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Friday, March 22, 2024, and so far it has fallen -1.19%. Further fall is indicated until a new bottom pivot has been found. The stock had a Golden Star Signal on Friday, September 15, 2023 in the long-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Buy
Special Signal Notification

Golden Star 12 Months

The stock had a Golden Star Signal on Friday, September 15, 2023 in the long-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Support, Risk & Stop-loss for Watsco Inc stock

On the downside, the stock finds support just below today's level from accumulated volume at $404.20 and $394.90. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Watsco Inc finds support just below today's level at $404.20. If this is broken, then the next support from accumulated volume will be at $394.90 and $384.17.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $8.08 between high and low, or 1.90%. For the last week, the stock has had daily average volatility of 2.19%.

Our recommended stop-loss: $418.72 (-3.58%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 3 days ago.)

Trading Expectations (WSO) For The Upcoming Trading Day Of Thursday 28th

For the upcoming trading day on Thursday, 28th we expect Watsco Inc to open at $431.59, and during the day (based on 14 day Average True Range), to move between $424.93 and $443.63, which gives a possible trading interval of +/-$9.35 (+/-2.15%) up or down from last closing price. If Watsco Inc takes out the full calculated possible swing range there will be an estimated 4.31% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $439.25 (1.14%) than the support at $404.20 (6.93%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Watsco Inc stock A Buy?

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Watsco Inc stock to perform well in the short-term period.

Current score: 2.551 Buy Candidate Unchanged

Predicted Opening Price for Watsco Inc of Thursday, March 28, 2024

Fair opening price March 28, 2024 Current price
$431.59 ( 0.620%) $434.28

The predicted opening price is based on yesterday's movements between high, low, and closing price.

Trading levels for WSO

Fibonacci Support & Resistance Levels

Level Price
Resistance R3 439.67 1.24 %
R2 436.58 0.530 %
R1 434.67 0.0905 %
Current price: 434.28
Support S1 428.50 -1.33 %
S2 426.59 -1.77 %
S3 423.51 -2.48 %

Accumulated Volume Support & Resistance Levels

Level Price
Resistance R3 0 .
R2 439.50 1.20 %
R1 439.25 1.14 %
Current price 434.28
Support S1 404.20 -6.93%
S2 394.90 -9.07%
S3 384.17 -11.54%

WSO Dividend Payout History


# Declaration Date Ex-Date Pay Date Amount Yield
1 Jan 02, 2024 Jan 16, 2024 Jan 31, 2024 $2.45 0.627%
2 Oct 02, 2023 Oct 16, 2023 Oct 31, 2023 $2.45 0.702%
3 Jul 03, 2023 Jul 14, 2023 Jul 31, 2023 $2.45 0.648%
4 Apr 03, 2023 Apr 14, 2023 Apr 28, 2023 $2.45 0.707%
5 Jan 03, 2023 Jan 13, 2023 Jan 31, 2023 $2.45 0.85%

FAQ

What is the symbol for Watsco Inc Stock and on which exchange is it traded?
The symbol for Watsco Inc is WSO and it is traded on the NYSE (New York Stock Exchange).

Should I buy or sell Watsco Inc Stock?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Watsco Inc stock to perform well in the short-term period.

How to buy Watsco Inc Stock?
Watsco Inc Stock can be purchased through just about any brokerage firm, including online brokerage services.
Click here for our free guide on how to buy Watsco Inc Stock.

What's the current price of Watsco Inc Stock?
As of the end of day on the 2024-03-27, the price of an Watsco Inc (WSO) share was $434.28.

What is the 52-week high and low for Watsco Inc Stock?
The 52-week high for Watsco Inc Stock is $441.29 and the 52-week low is $298.79.

What is the market capitalization of Watsco Inc Stock?
As of the 2024-03-27, the market capitalization of Watsco Inc is 16.797B.

When is the next earnings date for Watsco Inc?
The upcoming earnings date for Watsco Inc is Apr 18, 2024.
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About Watsco Inc

Watsco Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. The company distributes equipment comprising residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts, including replacement compressors, evaporator coils, motor... WSO Profile

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