AutoWeb Inc. (AUTO)

AutoWeb stock forecast: buy or sell

AutoWeb stock outlook

  • AutoWeb closed on Friday at $1.18 after skyrocketing a 3.51%.
  • Price is drawing a scaled uptrend since late March with higher tops and higher bottoms. Up to date, the uptrend made a 136% gain since the beginning of this rally
  • AutoWeb, Inc. operates as a digital marketing company for the automotive industry in the United States.
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Important:
The thoughts published in this article are personal and not recommendations for you to buy or sell stocks. The author of this report does not have any knowledge of the specific positions of the reader, his or her own financial statements 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 provided for learning motives only

AutoWeb stock chart overview

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 not any eligible buy setup. This doesn't mean we expect a selloff for AUTO in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell AutoWeb stock?

When you own a stock with some profit, it's really hard to decide the correct moment to sell and get your profits. Trading strategies help us to avoid impulsive decisions based on our personal emotions or the noise surrounding the market. When selling, as well as buying, our setups are very easy to follow and are only applicable for selling stocks in your porfolio, not for selling short AUTO stock

A golden rule is that you should not keep a trading operation that results in greater losses than those expected by the time of purchase. The timing to sell shares always has to 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 profit can keep their positions

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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 last month, just one brokerage rating was published for AutoWeb

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AutoWeb ratings

Brokerage firmRating
Jun 19th, 2020
B. Riley Neutral

Technical analysis

AutoWeb shares started an uptrend in late March, and grew a gorgeous 136%. The price shows higher highs and higher troughs, and along the way gave some buy points for those who wanted to invest. Latest pullback was in mid-May, when price bounced at $0.78. Now, it swings in a consolidation between its last top ($1.74) and its last bottom ($0.78)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend momentum. 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

Supports and resistances

Market investors use support and resistance levels as a way to find price points on a chart that tend to work as barriers, containing the price of a stock to move in certain direction. A support level is a level where the price tends to stop as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue declining until meeting another support level. In contrast, resistance levels are where the price may find resistance as it moves up. In the same way, this means that the price is more liable to "bounce off" at this level, and if it finally breaches this level, the price will climb easily until it meets the next resistance

The current resistances are:

  • R1: $1.32 (11.86% above)
  • R2: $1.35 (14.41% above)
  • R3: $1.44 (22.03% above)
  • The current support levels are:

  • S1: $0.78 (-33.9% below)
  • S2: $0.70 (-40.68% below)
  • S3: $0.65 (-44.92% below)
  • Bollinger bands

    So-called Bollinger bands are a widespread technique designed by John Bollinger. Essentially, the Bollinger Bands are bands that fluctuate around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price fluctuations to reveal when the price of a share or financial asset is overbought or oversold. 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, and it was 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 1 day (weak signal). The RSI reading on Friday was 50.87. Since RSI lost the overbought zone, AutoWeb stock collapsed a 22.37%

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    Earnings and financials

    AutoWeb Inc. (AUTO) reported adjusted EPS for the fiscal 1st-quarter that seriuosly undercut Market expectations. Quarterly EPS was $-0.27 per share instead of $-0.17. This quarterly report means an earnings surprise of -58.82%. On the contrary, reported sales were $24.5 million, in line with the market forecasts.

    This compares to earnings of $-0.27 per share a year ago, so current EPS means 0%. Looking at turnover, figures tanked a -22.56% compared to $31.6M same quarter a year ago.

    AutoWeb is hosting the earnings call on late next July. Wall Street estimates earnings of %s per-share of $-0.21, compared to Q1 that made $-0.27. Financial reporting day has a more than usual risk for investors as the results posted can jump up or down the shares price with lower liquidity and not honouring your buy or stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

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