AutoWeb Inc. (AUTO)
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
In the current situation of AutoWeb there is just one buy setup eligible:
AutoWeb stock is in an uptrend since last March that so far has marked a gorgeous 490% gain. Price marked a local bottom in this uptrend at $2.81 last Thursday, and since then it bounced off a 4.98%. Now, it's only 102.37% away from breaking out over its last top and resume the uptrend. The new entry point is therefore at $5.97. If you decide to enter this trade, the suggested stop loss is at $5.37
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$5.97||$5.37||10%|
When you are a novel trader and you own a stock with some profit, it's really difficult to decide the good moment to sell and get your benefits. As when we have to buy shares, deciding when is appropiate time to sell is not a random decision, and we must adhere our own trading strategy. Our trading system selects very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies are not intended for shorting AUTO stock
As a golden rule, you should never hold a trading operation that results in losses greater than those expected upon the buy. When to sell shares should always be dictated by the stop-loss (automatic or manual)
In the current situation of AutoWeb there is not any eligible sell setup, so AutoWeb stock holders with operations in green can keep their positions
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 AutoWeb
Since last March, AutoWeb has been drawing an uptrend that by now marked a gorgeous 490%. During this uptrend, the price provided some buy points on the breakouts. Latest pullback was last Thursday, when price bounced at $2.81. Currently, the price swings in a consolidation between its last top ($5.97) and its last bottom ($2.81)
A favorite tool of many technical analysts are the moving averages, that easily show trend direction. 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
Investors use support and resistance levels to find price points on a chart that tend to work as obstacles, containing the price of shares to move in certain direction. A support level is a level where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue falling until meeting another support level. On the other side, resistances are where the price may find a curb as it moves up. Likewise, this means that the price is more liable to "bounce off" at this level, and if it finally crosses this level, the price will climb easily until it finds the next resistance
The current resistances are:
The current support levels are:
This is an indicator that was developed in the 1980s by John Bollinger. It comprises three bands that are drawn superimposed on the price evolution chart:
The Relative Strength Index is an oscillator-type indicator that gauges price action to reveal when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI moves in a range from 0 to 100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders
The RSI dropped below the overbought level of 70 in early September after just crossing to the overbough zone for just one day (weak signal). The RSI reading last Friday was 44.72. AutoWeb price dropped a 40.52% since then
AutoWeb had the quarterly financial event and presented the 2nd-quarter report in early August. AutoWeb reported 2nd-quarter earnings of $-0.10 per share on revenue of $17.0 million. The market estimate was $-0.30 per share on revenue of $19.3 million.
Compared to the same quarter one year ago, EPS was $-0.38, so reported EPS is a improvement of 73.68%. Sales tanked a -37.24% on an annualized basis in the Q2, from $27.1M to $17.0M last quarter.
AutoWeb will host the Q3 earnings call on early next November. Market expects an Earnings per Share of $-0.10, compared to Q2 that was $-0.10. If you hold or you are considering buying AutoWeb stock, you must be on your toes as the financial reporting day usually has a very high volatility, and price can gap up or down with unsually low liquidity and not honouring your buy or stop-loss orders. You can obtain more details about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.autoweb.com.