AvalonBay Communities, Inc. (AVB)

AVB stock forecast: buy or sell

AVB stock outlook

  • AvalonBay Communities stock inched down -1.43% to close at $147.06 on the stock market today.
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Important note:
The comments contained in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not have an understanding of the specific positions of the reader, his or her 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 posted for educative purposes only

AVB stock charts overview

Should I buy AvalonBay Communities 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 Communities there is not any eligible buy setup. This doesn't mean we expect a selloff for AVB in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell AvalonBay Communities stock?

When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the correct moment to sell and get your benefits. Similarly to when we have to buy shares, determining when is appropiate to sell is not a random decision, and we must follow our own trading style. When selling, as well as buying, our setups are very easy to follow but are only valid for selling stocks in your porfolio, not for shorting AVB stock

A guiding principle is that you should not hold a trade that produces losses greater than those expected at the time of the buy. The timing to sell your stock must always be determined by the stop-loss (automatic or manual)

Is it time to sell AvalonBay Communities stock?

Currently, AvalonBay Communities stock doesn't match any of our preferred sell setups, so if you own AvalonBay Communities stock and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell AvalonBay Communities 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 30 days, just one brokerage rating was published for AvalonBay Communities

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AvalonBay Communities ratings

Brokerage firmRating
Aug 27th, 2020
Morgan Stanley

Technical analysis

SMAs overview

Moving averages are simple indicators for investors to measure market 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

Supports and resistances

Traders use support and resistance levels to identify price points on a chart that may behave as obstacles, containing the price of a stock to move in certain direction. A support level is a level where the price tends to find support 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 finding another support level. In contrast, resistances are where the price may find resistance as it rises. In the same way, this means that the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will rise more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $147.36 (0.2% above)
  • R2: $147.61 (0.37% above)
  • R3: $147.87 (0.55% above)
  • The current support levels are:

  • S1: $146.40 (-0.45% below)
  • S2: $145.51 (-1.05% below)
  • S3: $145.48 (-1.07% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It is composed of 3 lines 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

    Since the price broke down the lower band on Monday, the price bounced off by 1%. The price is moving near to the lower Bollinger band, signaling some level of oversold in recent sessions. This is not a buy signal, as price can move in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to plot the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range from 0% to 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

    When the relative strength (RSI) moves for so long below 70 and above 30, without showing moments of overbought and oversold, the indicator is of little use, and we are currently in such a case.

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    Earnings and financials

    Second-quarter shareholders event was hosted by AVB in late July after posting the earnings report. AVB posted Q2 earnings of $1.21 per share on sales of $577.4 million. The Wall St estimate was $1.03 per share on revenue of $591.8 million.

    Compared to the same quarter one year ago, EPS was $1.21, so posted EPS means 0%. Looking at revenue, figures scarcely moved compared to $577.5M same quarter a year ago.

    AVB is presenting Q3 earnings report on late next October. Market forecasts earnings of %s a share of $0.95, compared to previous quarter that made $1.21. If you own or you are looking to buy AVB stock, you must be on your toes as financial reporting day usually has a very high volatility, and price can soar and sink with unsually low liquidity and not honouring your buy or stop-loss orders. You can find more details about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.avalonbay.com.

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