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AutoWeb Inc. (AUTO)

AutoWeb stock forecast: buy or sell

Close on Sep 25th, 2020
$2.95 0.01%
3 months performance
1.44%
Published: September 28th, 2020 - 5.30am EDT

AutoWeb stock outlook

  • AutoWeb stock inched 1.37% to close at $2.95 on the stock market last Friday.
  • From the chart point view, price is drawing a scaled uptrend since last March with higher tops and higher bottoms. Up to date, the uptrend marked a 490% profit since the beginning of this rally
  • AutoWeb, Inc. operates as a digital marketing company for the automotive industry in the United States.

Please read:
The opinions published in this article are personal and not recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the individual situations of the reader, his or her 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 expressed for educative purposes only

AutoWeb stock charts

Should I buy AutoWeb 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 AUTO stock a buy?

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

Uptrend buy setup

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 setupBuy pointStop lossRisk
Uptrend buy setup$5.97$5.3710%

Should I sell AutoWeb stock?

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)

Is it time to sell AutoWeb stock?

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

Analysts' recommendations to buy or sell AutoWeb 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 AutoWeb

Technical analysis

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)

SMAs overview

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

AUTO SMAs chart

Supports and resistances

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:

  • R1: $2.95 (0% above)
  • R2: $2.96 (0.34% above)
  • R3: $3.03 (2.71% above)
  • The current support levels are:

  • S1: $2.88 (-2.37% below)
  • S2: $2.81 (-4.75% below)
  • S3: $2.75 (-6.78% below)
  • Bollinger bands

    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 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

    AUTO RSI chart

    Relative strength index

    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

    AUTO RSI chart

    Earnings and financials

    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.

    AUTO revenues and profits chart