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American Software Inc. Class A Common Stock (AMSWA)

AMSWA stock forecast: buy or sell

Close on Sep 28th, 2020
$14.34 0.02%
3 months performance
-0.09%
Published: September 28th, 2020 - 5.35pm EDT

AMSWA stock outlook

  • American Software closed today at $14.34 (2.43%) prior to reporting financial results at
  • From the chart point view, price is drawing an scaled downtrend since early June with lower tops and lower bottoms. shares price lost a -32.8% since the downtrend started.
  • American Software, Inc. develops, markets, and supports a range of computer business application software products and services in the United States and internationally.

Please read:
The comments published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not know the specific circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for informational reasons only

AMSWA stock charts

Should I buy American Software stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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 not any eligible buy setup. This doesn't mean AMSWA will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell American Software stock?

When you are a novel trader and you own stock shares with some profit, it's really hard to decide the good moment to sell and get your profits. Like when we have to buy shares, choosing when is appropiate time to sell is not a fickle decision, and we must adhere our own trading style. When selling, as well as buying, detailed strategies are very simple to use but are only valid for selling stocks in your porfolio, not for shorting American Software stock

A guiding principle is that you should not mantain an open trade that results in higher than expected losses at the time of the buy. When to sell your stock should always be ruled 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

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

We don't have any rating published in the previous month for American Software

Technical analysis

American Software accumulates a selloff of -32.8% since its latest peak early June at $21.34. The stock drew 2 consecutive lower tops

SMAs overview

Moving averages are simple tools for traders to measure stock direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

AMSWA SMAs chart

Supports and resistances

Traders use supports and resistances to find price points in the stock price action that tend to work as barriers, containing the price of shares to move in certain direction. Supports are levels where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue declining until meeting another support level. On the other hand, a resistance level is where the price may find resistance as it moves up. Again, this means that the price is more liable to "rebound" at this level, and if it finally ruptures this level, it will rise more easily until it hits the next resistance

The current resistance levels are:

  • R1: $14.35 (0.07% above)
  • R2: $14.47 (0.91% above)
  • R3: $14.88 (3.77% above)
  • The current supports are:

  • S1: $14.25 (-0.63% below)
  • S2: $14.02 (-2.23% below)
  • S3: $13.25 (-7.6% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known practice developed by John Bollinger. Basically, the Bollinger Bands are lines that run around a centralmoving average, ranging the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell signal, as price can trade in these levels for many days and weeks

    AMSWA RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to plot 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 broke out the oversold level of 30 on September 9 after just being in the oversold zone for a single day (what can be considered a strength sign). The RSI reading today was 45.36. American Software price skyrocketed a 6.94% since that level was surpassed

    AMSWA RSI chart

    Earnings and financials

    American Software Inc. Class A Common Stock (AMSWA) reported EPS for the fiscal third-quarter that slightly uplifted Wall St. expectations. Quarterly EPS was $0.00 per share from an estimated $0.07. This quarterly report represents an earnings surprise of -100%. Sales was $27.3 million compared to $28.8 million forecasted by analysts.

    Compared to the same quarter one year ago, EPS was $0.05, so posted EPS is a loss of -100%. Turnover just changed on an annualized basis in the Q3, from $27.4M to $27.3M last quarter.

    AMSWA will host the earnings call. If you own or you are planning to buy AMSWA stock, be aware that the financial reporting day usually has a very high volatility, and price can soar and sink with unsually low liquidity and not honouring your buy/stop-loss orders. You can obtain more information about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.amsoftware.com.

    AMSWA revenues and profits chart