Bitcoin (BTC) Price Analysis: Will This Wedge Support Hold?

Bitcoin has formed lower highs and slightly lower lows to create a falling wedge formation on its 4-hour time frame. Support is holding for now but it …

Bitcoin has formed lower highs and slightly lower lows to create a falling wedge formation on its 4-hour time frame. Support is holding for now but it looks like bears are trying to go for a break lower.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Also, the gap between the moving averages is widening to reflect stronger selling pressure. Price is below both moving averages to signal the presence of selling pressure also.

RSI already dipped to the oversold region to signal exhaustion among sellers and appears to be pulling back up to indicate that buyers might return. In that case, bitcoin could still bounce off support and test the top of the wedge at the $3,800 area again. This lines up with the 200 SMA dynamic inflection point to add to its strength as a ceiling.

Stochastic has just reached the oversold region to reflect slower selling pressure and might also be due to turn higher soon. A shallow bullish divergence can be seen as price made lower lows while the oscillator had slightly higher lows since mid-January.

Still, a break below support could spur a slide that’s the same size as the wedge formation. This spans $3,600 to around $4,400 so the resulting downtrend could last by at least $800. Similarly a break above the wedge top could spur a rally of the same height.

Bitcoin has had a rough couple of weeks as traders appeared to turn their optimism down a notch. As it is, the industry has yet to report positive developments that could sustain the rallies from the start of the year, but the lack of bullish interest despite upside breakouts suggests caution.

Anaplan (PLAN) estimated to achieve EPS growth of -18.30% for this year

Anaplan (PLAN) projected to achieve earnings per share (EPS) growth of -18.30% for this year while EPS growth expected to touch 13.40% for next …

Anaplan (PLAN)’s EPS growth Analysis:

Valuation-related measures are often lousy instruments for timing the market. But that doesn’t mean they can’t hold interesting information about equity market returns. In the long run equity markets that exhibit stronger EPS growth tend to outperform. This relationship increases the importance of accurate EPS growth estimates for different markets. EPS growth percentage represents the annualized rate of net-income-per-share growth over the trailing one-year period for the stocks held by a stock. Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability per unit of equity.

All things being equal, stocks with higher earnings-per-share growth rates are generally more desirable than those with slower earnings-per-share growth rates. One of the important differences between earnings-per-share growth rates and net-income growth rates is that the former reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases.

Anaplan (PLAN) projected to achieve earnings per share (EPS) growth of -18.30% for this year while EPS growth expected to touch 13.40% for next year. The company reported EPS (ttm) of -0.86.

Anaplan (PLAN) year-to-date (YTD) performance stood at 12.28%. The stock price moved with change of 0.34% to its 50 Day low point and changed 44.66% comparing to its 50 Day high point. PLAN stock is currently showing positive return of 4.38% throughout last week and witnessed increasing return of 15.64% in one month period. The stock price jumped 17.18% in three months.

The recent session unveiled a 46.30% higher lead over its 52-week stock price low and showed higher move of 0.34% over its 52-week high stock price. The stock price volatility remained at 6.28% in recent month and reaches at 7.04% for the week. The Average True Range (ATR) is also a measure of volatility is currently sitting at 1.76.

Analysis of Simple Moving Average:

The Simple Moving Average is arguably the most popular technical analysis tool used by traders. The Simple Moving Average (SMA) is often used to identify trend direction, but can be used to generate potential buy and sell signals.

When price is in an uptrend and subsequently, the moving average is in an uptrend, and the moving average has been tested by price and price has bounced off the moving average a few times (i.e. the moving average is serving as a support line), then a trader might buy on the next pullbacks back to the Simple Moving Average.

At times when price is in a downtrend and the moving average is in a downtrend as well, and price tests the SMA above and is rejected a few consecutive times (i.e. the moving average is serving as a resistance line), then a trader might sell on the next rally up to the Simple Moving Average.

Anaplan (PLAN) stock price performed at a change of 12.42% from 20 day SMA and stands at a distance of 16.74% away from 50 day SMA. At present time the stock is moving 18.57% away to its 200-day moving average.

Short Ratio of stock is 5.61. Anaplan is a part of Technology sector and belongs to Business Software & Services industry. Anaplan (PLAN) finalized the Friday at price of $29.8 after traded 767158 shares. The average volume was noted at 534.13K shares while its relative volume was seen at 1.44. Volume is an important technical analysis tool to learn and understand how to apply to price movements. Volume increases every time a buyer and seller transact their stock or futures contract. If a buyer buys one share of stock from a seller, then that one share is added to the total volume of that particular stock. Volume has two major premises:

When prices rise or fall, an increase in volume acts as confirmation that the rise or fall in price is real and that the price movement had strength. When prices rise or fall and there is a decrease in volume, then this might be interpreted as being a weak price move, because the price move had very little strength and interest from traders.

Anaplan (PLAN) reported positive change of 3.83% in last trading session. It is a positive indicator for investor portfolio value — when the price of a stock Investor owns goes up in value. On the other side it is not a negative indicator for Investor portfolio value — when the price of a stock Investor owns moves down in value.

In the liquidity ratio analysis; current ratio was 2.7 while Total Debt/Equity ratio was 0.01. The return on investment ratio was -42.30%. Price to sales ratio was 16.47 while Price to sales book ratio stands at 10.31. 8.90% shares of the company were owned by Institutional investors and Insider investors hold stake of 12.10%.

Keep Eyes On RSI Indicator:

The stock’s RSI amounts to 62.2. Wilder believed that when prices rose very rapidly and therefore momentum was high enough, that the underlying financial instrument/commodity would have to eventually be considered overbought and a selling opportunity was possibly at hand. Likewise, when prices dropped rapidly and therefore momentum was low enough, the financial instrument would at some point be considered oversold presenting a possible buying opportunity.

There are set number ranges within RSI that Wilder consider useful and noteworthy in this regard. According to Wilder, any number above 70 should be considered overbought and any number below 30 should be considered oversold. An RSI between 30 and 70 was to be considered neutral and an RSI around 50 signified no trend. – Some traders believe that Wilder’s overbought/oversold ranges are too wide and choose to alter those ranges. For example, someone might consider any number above 80 as overbought and anything below 20 as undersold. This is entirely at the trader’s discretion.

The content above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance. Trading is inherently risky. Wallstreetinvestorplace.com shall not be liable for any special or consequential damages that result from the use of or the inability to use, the materials and information provided by this site.

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Alaric Carter

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