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Charter Communications, Inc. (CHTR)

CHTR stock forecast: buy or sell

Close on Sep 25th, 2020
$614.23 0.00%
3 months performance
0.21%
Published: September 27th, 2020 - 16:34

CHTR stock outlook

  • Charter Communications closed on Friday at $614.23 after merely changing a 0.45%.
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $345.67. Up to date, price marked a 77.69% gain since the beginning of this rally
  • Credit Suisse Group posted a bullish rating for Charter Communications on Wednesday, targeting $724.00
  • Charter Communications, Inc., through its subsidiaries, provides cable services to residential and commercial customers in the United States.

Important note:
The thoughts expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the specific situations of the reader, his or her finances 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 Thoughts are expressed for learning reasons only

CHTR stock charts

Should I buy Charter Communications 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 CHTR stock a buy?

Currently, Charter Communications stock matches one trading strategy:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it scales rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Charter Communications can break to all-time highs any time soon, as it only needs to go up a 3.52%. The buy point is at $635.86 if you want to trade with this strategy. The stop loss would be placed at $573.85

Buy setupBuy pointStop lossRisk
ATH buy setup$635.86$573.859.75%

Should I sell Charter Communications stock?

Do you know when is it time to sell Charter Communications?. Just as when we have to buy shares, deciding when is appropiate to sell is not a whimsical decision, and we must use our own trading style. When selling, as well as buying, our strategies are very easy to follow but are only applicable for selling shares in your porfolio, not for selling short Charter Communications stock

A guiding principle is that you should not hold an investment that generates greater losses than those expected by the time of purchase. The moment to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Charter Communications stock?

Currently, Charter Communications stock doesn't match any of our preferred sell setups, so if you hold Charter Communications shares and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Charter Communications 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, 2 analyst ratings were published for Charter Communications. General sentiment is bullish, with 2 out of 2 posting optimistic outlooks

Charter Communications ratings

Brokerage firmRating
Sep 11th, 2020
Pivotal Research Strong buy
Sep 23rd, 2020
Credit Suisse Group Buy

Technical analysis

Charter Communications stock started an uptrend last March, and gained a gorgeous 77.69%. The price line shows higher highs and higher lows, and along the way provided some buying opportunities for those who wanted to enter. Latest low was on September 8, when price bounced at $591.60. Currently, it moves in a consolidation between its last top ($635.86) and its last bottom ($591.60)

SMAs overview

Moving averages are simple tools for traders to measure 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

CHTR SMAs chart

Supports and resistances

Traders use support and resistance levels to find price points in the stock price action that tend to work as barriers, containing the price of a stock to move in certain direction. Supports are levels where the price tends to stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue declining until approaching another support level. On the contrary, resistances are where the price tends to find a curb as it moves up. Again, the price is more likely to "bounce off" at this level, and if it finally crosses this level, the price will rise more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $629.52 (2.49% above)
  • R2: $635.86 (3.52% above)
  • The current supports are:

  • S1: $591.60 (-3.68% below)
  • S2: $549.00 (-10.62% below)
  • S3: $546.54 (-11.02% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. Basically, the Bollinger Bands are lines that run around a centralmoving average and vary the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on Tuesday, the price sliced by 3.17%

    CHTR RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to map the current and previous weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. 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 on September 3 after just crossing to the overbough zone for a single day (weak signal). The RSI value on Friday was 51.75. Charter Communications price inched down a 1.32% since RSI lost the overbought zone

    CHTR RSI chart

    Earnings and financials

    CHTR had the quarterly financial event and posted the Q2 report in late July. CHTR surpassed market estimates and presented an Earnings per Share of $3.63, that is a 48.77% increase versus the previous estimates of $2.44. Reported sales were $11.7 billion versus estimates of $11.6 billion.

    Same quarter last year, reported EPS was $1.39, so current EPS is an increase of 161.15%. Looking at revenues, figures just moved compared to $11.3B same quarter last year.

    CHTR releases earnings report on late next October. Market forecasts earnings of %s a share of $3.02, compared to Q2 that made $3.63. Financial reporting day has an additional risk for traders as the data posted can soar and sink the shares price with lower volume and not honouring your buy or stop-loss orders. You can probably uncover more details about the earnings call and the financial reports on the Investor Relations section of its website: http://corporate.charter.com.

    CHTR revenues and profits chart