American Software Inc. Class A Common Stock (AMSWA)

AMSWA stock forecast: buy or sell

AMSWA stock outlook

  • American Software stock inched down -1.07% to close at $15.69 on the stock market today, after 4 consecutive sessions in negative.
  • Price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. Up to date, price made a 74.53% gain since the beginning of this rally
  • American Software, Inc. develops, markets, and supports a portfolio of software and services worldwide.
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Please read:
The comments contained in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the individual positions of the reader, his or her own 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 Opinions are provided for general educational motives only

AMSWA stock chart overview

Should I buy American Software 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 AMSWA stock a buy?

In the current situation of American Software there is just one buy setup eligible:

Uptrend buy setup

American Software stock continues to trend higher since in mid-March and has marked an amazing 74.53% gain. Price marked a local bottom in this uptrend at $15.03 on June 25, and since then it bounced off a 4.39%. Now, it's just 36.9% away from breaking out above its last top and resume the uptrend. The new buy point is therefore at $21.48. If you decide to enter this trade, the suggested stop loss is at $19.33

Buy setupBuy pointStop lossRisk
Uptrend buy setup$21.48$19.3310%
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Should I sell American Software stock?

How to know when is it time to sell American Software stock?. Trading strategies help us to avoid rash decisions based on our personal feelings or the buzz surrounding the market. Our trading system selects very simple setups to guide us on when is a good moment to sell our shares. Be aware that these setups are not intended for selling short AMSWA stock

A golden rule is that you should not mantain a trading operation that generates losses greater than those expected at the time of purchase. When to sell shares should always be determined by the stop-loss (automatic or manual)

Is it time to sell American Software stock?

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

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Analysts' recommendations to buy or sell American Software 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 last 30 days, just one analyst rating was published for American Software

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American Software ratings

Brokerage firmRating
Jun 15th, 2020
B. Riley Neutral

Technical analysis

American Software stock started an uptrend in mid-March, and grew an amazing 74.53%. During this uptrend, the price provided some buy points on the breakouts. Latest low was on June 25, when price bounced at $15.03. Currently, it swings in a consolidation between its last top ($21.48) and its last bottom ($15.03)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use support and resistance levels as a way to identify price points on a chart that tend to work as glass ceiling, containing the price of a stock to move in certain direction. A support level is a level where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it is likely to continue descending until approaching another support level. On the contrary, resistances are where the price may find resistance as it rises. In the same manner, the price is more likely to "rebound" at this level, and if it finally ruptures this level, the price will rally more easily until it approaches the next resistance

The current resistances are:

  • R1: $15.73 (0.25% above)
  • R2: $16.76 (6.82% above)
  • R3: $17.71 (12.87% above)
  • The current supports are:

  • S1: $15.28 (-2.61% below)
  • S2: $15.23 (-2.93% below)
  • S3: $15.03 (-4.21% below)
  • Bollinger bands

    So-called Bollinger bands are a well-established studio that was created by John Bollinger. It comprises 3 lines that are 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 map the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in mid-June after just crossing to the overbough zone for just one day (weak signal). The RSI value yesterday was 39.2. Since that level was lost, American Software shares sank a 23.01%

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    Earnings and financials

    On June 18, AMSWA hosted the shareholders call and presented the Q2 report. AMSWA posted second-quarter earnings of $0.04 per share on sales of $29.3 million. The analysts estimate was $0.06 per share on revenue of $28.4 million.

    By comparison, the EPS for the same quarter last year was $0.09, so posted EPS means a decrease of -55.56%. Looking at revenue, figures rose a 11.43% compared to $26.3M year over year.

    AMSWA presents Q3 financial report next August. Wall Street expects a per-share earnings of %s of $0.07, compared to previous quarter that made $0.04. If you hold or you are looking to buy AMSWA shares, you must be on alert as financial reporting day usually has a higher than usual volatility, and price can gap up or down with exceptionally low liquidity and not honouring your buy/stop-loss orders. Check company's website to confirm time and details on the earnings call and the earnings report.

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