Thu 21'st Sep 2017
Zumiez Inc. Stock Analysis
Technical stock analysis for Thu 21'st Sep 2017
Buy candidate since 2017-09-05 Gain 31.08%
Zumiez Inc. lies in the upper part of a very 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 $17.17 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 25.43% during the next 3 months and, with 90% probability hold a price between $15.89 and $21.54 at the end of this period.
Zumiez Inc. holds a sales signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately $16.66. On a fall, the stock will find some support from the long-term average at approximately $13.65. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sales signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Friday September 15, 2017, which indicates further falls until a new bottom pivot has been found. 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 holds a RSI14 at 79 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
Support & Resistance
Zumiez Inc. finds support from accumulated volume at $16.30. On the upside the stock meets some resistance just above today's level from accumulated volume at $16.65, $16.80 and $16.95.
The stock is about to test the resistance from accumulated volume at $16.65 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
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 $0.40 between high and low, or 2.44%. For the last week, the stock has had a daily average volatility of 3.58%.
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 and the RSI is still moving upwards. Regardless, the high RSI together with the trendposition 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: $15.48 (-5.89%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 79 and this increases the risk substantially. There is a sell signal from pivot top found 4 days ago.)
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term.
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