Atlas Financial Holdings Inc. (AFH)

Atlas Financial stock forecast: buy or sell

Atlas Financial stock outlook

  • Atlas Financial stock sank -12.5% to close at $0.56 on the stock market yesterday.
  • Atlas Financial Holdings, Inc., through its subsidiaries, engages in underwriting commercial automobile insurance policies in the United States.
No ad for you

Disclaimer:
The thoughts expressed in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not have an understanding of the individual situations of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for learning purposes only

Atlas Financial stock chart overview

Should I buy Atlas Financial stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is AFH stock a buy?

Currently, Atlas Financial stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for AFH in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

No ad for you

Should I sell Atlas Financial stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Similarly to when we have to buy shares, deciding when is appropiate time to sell is not a capricious decision, and we must adhere our own trading style. When selling, as well as buying, our strategies are very simple to follow and are only valid for selling shares you already own, not for shorting AFH stock

A guiding principle is that you must never mantain a trading operation that generates losses greater than those expected by the time of purchase. When to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Atlas Financial stock?

Currently, Atlas Financial stock doesn't match any of our preferred sell setups, so if you hold Atlas Financial shares and your operation is in profit probably is not time to sell now

No ad for you

Analysts' recommendations to buy or sell Atlas Financial stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the previous 30 days we couldn't find any rating for Atlas Financial

No ad for you

Technical analysis

SMAs overview

Moving averages are simple tools for investors to detect momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Traders use supports and resistances to identify price points on a chart that tend to act as barriers, containing the price of a stock to move in certain direction. A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue descending until approaching another support level. On the other side, resistances are where the price tends to find resistance as it rises. In the same way, the price is more liable to "rebound" at this level, and if it finally crosses this level, it will rally easily until it finds the next resistance

The current resistance levels are:

  • R1: $0.59 (5.36% above)
  • R2: $0.60 (7.14% above)
  • R3: $0.78 (39.29% above)
  • The current supports are:

  • S1: $0.54 (-3.57% below)
  • S2: $0.53 (-5.36% below)
  • S3: $0.50 (-10.71% below)
  • Bollinger bands

    So-called Bollinger bands are a widespread technical strategy developed by John Bollinger. It consists of 3 bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to chart the current and past strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves between 0 and 100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on June 22 after just crossing to the overbough zone for 1 day (weak signal). The RSI reading yesterday was 47.93. Atlas Financial stock sank a 46.15% since then

    No ad for you

    Earnings and financials

    Atlas Financial Holdings Inc. (AFH) reported EPS for the fiscal first-quarter that strongly uplifted analysts' expectations. Quarterly EPS was $0.00 per share versus $0.32. This Q1 report means an earnings surprise of -100%. Turnover was $0.00 in contrast to $100.2 million forecasted by market consensus.

    Same quarter last year, reported EPS was $0.32, so recently reported EPS means a reduction of -100%. Turnover sank a -27% on an annualized basis in the 1st-quarter, from $55.8M to $40.7M last quarter.

    Atlas Financial is posting financial report on mid next August. Wall Street predicts earnings of %s per-share of $0.32, compared to previous quarter that made $0.00. If you hold or you are considering buying Atlas Financial stock, you must be on alert as the financial reporting day usually has a higher than usual volatility, and price can soar and sink with exceptionally low liquidity and not respecting your buy or stop-loss orders. It's always good to review company's website to confirm time and details about the earnings call and the earnings report.

    No ad for you