AVB stock: buy or sell
Jan 18th, 2021
AVB stock brief
- Counting last Friday, it's been 4 consecutive sessions in positive for AvalonBay. Price closed last Friday at $164.00 after growing a 2.19%.
- The price is currently above the upper Bollinger band, which often indicates a short-term correction
- The stock is configuring an uptrend pattern since last October, when it bottomed at $130.05. Up to date, shares made a 26.11% profit since the beginning of this rally
Should I buy AvalonBay 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 $AVB stock a buy?
In the current situation of AvalonBay there is just one buy setup eligible:
Uptrend buy setup
AvalonBay stock continues to trend higher since last October and marked a gorgeous 26.11% gain. Price marked a local bottom in this uptrend at $153.43 in mid-December, and since then it bounced off a 6.89%. Now, it's just 11.35% away from breaking out above its last top and resume the uptrend. The new entry point is therefore at $182.62. If you decide to enter this trade, the suggested stop loss is at $164.36
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$182.62||$164.36||10.00%|
Should I sell AvalonBay stock?
When you are a novel trader and you own a stock with some profit, it's really difficult to decide the best moment to sell and get your benefits. Trading strategies prevent us from making impetuous decisions based on our sentiments or the buzz surrounding the market. Our trading system selects very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups are not intended for shorting $AVB stock
As a golden rule, you should not hold an investment that shows a greater losses than those expected by the time of the buy. The timing to sell your stock must always be dictated by the stop-loss (automatic or manual)
Is it time to sell AvalonBay stock?
In the current situation of AvalonBay there is not any eligible sell setup, so AvalonBay stock holders with operations in profit can keep their positions
In the last 30 days, just one analyst rating was published for AvalonBay
|Dec 21st, 2020|
|JPMorgan Chase & Co.||Buy → Neutral|
AvalonBay stock analysis
Since last October, AvalonBay has been printing an uptrend that so far marked an amazing 26.11%. Rising tops and bottoms can be seen easily on a chart and how price offered very few entry points on the breakouts. Latest pullback was in mid-December, when price bounced at $153.43. Like in all uptrends, price needs to take breath and currently price is consolidating the gains in a range between $182.62 and $153.43
Supports and resistances
The current resistance levels are:
The current support levels are:
The actual range between the upper and lower bands is 4.59%, meaning that volatility is at very low levels. Reduced volatility is often the antecedent to a sudden movement (up or down), so we must be alert and manage our buy or sell orders accordingly
Relative strength index
The RSI dropped below the overbought level of 70 last November after just crossing to the overbough zone for a single day (weak signal). The RSI reading last Friday was 58.43. AvalonBay price dropped a 3.56% since then
AvalonBay stock price history
AvalonBay started trading on Mar 11th, 1994 priced at $6.05 per share1. Since then, AVB stock surged by 2,610.74%, with an average of 100.41% per year. If you had invested thousand dollars in AvalonBay stock on Mar 1994, it would have a value of $27,107.44 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for AvalonBay stock
Nobody knows how much a stock will be priced in the future. Banks and financial organisations post their analysis predicting how a stock will performance in the future.
The following table shows the price predictions released by brokerage institutions in the last month. If you are a small trader you should not invest based on these projections.
There is just one price target issued for AvalonBay that forecasts a price of $182.00.
|Brokerage firm||Price target|
|Dec 21st, 2020|
|JPMorgan Chase & Co.||$182.00|
Earnings and financials
Last October, AvalonBay Communities, Inc. ($AVB) reported EPS for that significantly uplifted analysts' expectations. Quarterly EPS was $2.06 per share instead of $0.96. This Q3 report represents an earnings surprise of 114.58%. On the contrary, the company said revenue for Q3 was $567.4 million consistent with analysts' forecasts.Compared to the same quarter one year ago, EPS was $2.00, so posted EPS is a increase of 3.00%. Looking at turnover, figures only moved compared to $5.9B same quarter a year ago.
AVB ($AVB) is hosting the quarterly earnings call next Wednesday. Estimated for this quarter is $0.86, compared to $2.06 that was reported for Q3.
Important note:The comments written in this post are personal and not recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the individual situations of the reader, his or her own financial statements 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 Viewpoints are published for informational purposes only
|Friday, January 15th, 2021|
|Day range||$159.68 - $164.31|
|Average true range||$3.99|
|50d mov avg||$162.00|
|100d mov avg||$155.68|
|200d mov avg||$153.88|
|Earnings date||February 3rd, 2021|