Drax Group Stock Forecast

Red day on Wednesday for Drax Group
(Updated on Apr 17, 2024)

DRX.L Signals & Forecast

The Drax Group stock holds a sell 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 giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately £494.84. On a fall, the stock will find some support from the long-term average at approximately £482.62. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. 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, April 12, 2024, and so far it has fallen -4.92%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

Support, Risk & Stop-loss for Drax Group stock

Drax Group finds support from accumulated volume at £473.00 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 £16.60 (3.42%) between high and low. For the last week, the stock has had daily average volatility of 3.21%.

Our recommended stop-loss: £462.24 (-4.77%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 3 days ago.)

Trading Expectations (DRX.L) For The Upcoming Trading Day Of Thursday 18th

For the upcoming trading day on Thursday, 18th we expect Drax Group to open at £490.93, and during the day (based on 14 day Average True Range), to move between £469.80 and £501.00, which gives a possible trading interval of +/-£15.60 (+/-3.21%) up or down from last closing price. If Drax Group takes out the full calculated possible swing range there will be an estimated 6.43% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at £492.60 (1.48%) than the support at £473.00 (2.55%), 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 Drax Group stock A Buy?

Drax Group holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Current score: -0.908 Hold/Accumulate Unchanged

Predicted Opening Price for Drax Group of Thursday, April 18, 2024

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