Endava plc (DAVA)

DAVA stock forecast: buy or sell

DAVA stock outlook

  • Endava plc American Depositary Shares (e closed yesterday at $52.59 (0.52%) prior to presenting earnings at
  • The price is currently higher than the upper Bollinger band, which is usually an indicator of a near-term correction
  • On Wednesday broke out above its latest top at $51.94
  • The stock is configuring an uptrend pattern since late March, when it bottomed at $27.21. This uptrend marked a 93.27% gain. Endava plc American Depositary Shares (e gained a 1.25% since Wednesday after breaking out over its last top at $51.94
  • Endava plc provides technology services for clients in the consumer products, healthcare, logistics, and retail verticals in Europe, Latin America, and the United States.
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Important:
The comments expressed in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not have an understanding of the particular circumstances 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 Opinions are provided for informational purposes only

DAVA stock chart overview

Should I buy Endava plc American Depositary Shares (e 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 DAVA stock a buy?

Currently, Endava plc American Depositary Shares (e stock matches one trading strategy:

Uptrend buy setup

Endava plc American Depositary Shares (e stock is in an uptrend since in late March that so far has marked an amazing 93% gain. Price marked a local bottom in this uptrend at $43.52 on June 29, and since then it bounced up a 20.84%. Price just broke out above the entry point at $51.94, but it's still eligible. If price goes beyond $54.54, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $46.75

Buy setupBuy pointStop lossRisk
Uptrend buy setup$51.94$46.7510%
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Should I sell Endava plc American Depositary Shares (e stock?

How to know when is it time to sell Endava plc American Depositary Shares (e stock?. In the same way as when we have to buy shares, choosing when is the best time to sell is not a capricious decision, and we must use our own trading strategy. When selling, as well as buying, our strategies are very easy to use and are only valid for selling stocks in your porfolio, not for shorting DAVA stock

A guiding principle is that you should never keep an investment that shows a greater losses than those expected upon the buy. When to sell your stock must always be ruled by the stop-loss (automatic or manual)

Is it time to sell Endava plc American Depositary Shares (e stock?

Currently, Endava plc American Depositary Shares (e stock doesn't match any of our preferred sell setups, so if you hold Endava plc American Depositary Shares (e stock and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Endava plc American Depositary Shares (e 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 rating was published for Endava plc American Depositary Shares (e

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Endava plc American Depositary Shares (e ratings

Brokerage firmRating
Jun 15th, 2020
Morgan Stanley

Technical analysis

Endava plc American Depositary Shares (e stock started an uptrend in late March, and gained an amazing 93.27%. During this uptrend, the price provided some buy points on the breakouts. Latest pullback was on June 29, when price bounced at $43.52. Endava plc American Depositary Shares (e broke out above $51.94 (its last top) on Wednesday. That breakout was a good entry point

SMAs overview

A favorite tool of many traders 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

Supports and resistances

Technical analysts use supports and resistances as a way to find price points in the stock price action that may act as obstacles, containing the price of shares to move in certain direction. A support level is a level 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. However, if the price breaks down this level, it is likely to continue declining until meeting another support level. On the other side, resistances are where the price tends to find opposition as it rises. Again, this means that the price is more liable to "rebound" at this level, and if it finally breaches this level, the price will climb easily until it hits the next resistance

The current resistance levels are:

  • R1: $56.76 (7.93% above)
  • The current support levels are:

  • S1: $51.94 (-1.24% below)
  • S2: $49.75 (-5.4% below)
  • S3: $48.00 (-8.73% below)
  • Bollinger bands

    The so-called Bollinger bands are a widely known technique created by John Bollinger. It consists 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

    Price levels above or below the Bollinger Bands signal that the price has has trended strongly to extreme upward or downward values. In this case, the price is beyond the upper band, meaning a near-term correction (at least) until it is below the band

    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 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. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    When the RSI fluctuates for so long below 70 and above 30, without showing moments of overbought and oversold, the indicator turns out to be of little use, and we are currently in one of these situations.

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    Earnings and financials

    Endava plc (DAVA) released 1st-quarter earnings of $23.00 per share, slightly uplifting the Wall St consensus estimate of $21.68 per share. This quarterly report represents an earnings surprise of 6.09%. On the contrary, the company reported turnover for this quarter was $92.2 million consistent with analysts' estimates.

    In contract, the EPS for the same quarter last year was $19.00, so reported EPS means a improvement of 21.05%. Looking at revenue, figures exploded a 26.24% compared to $73.1M same quarter 12 months ago.

    DAVA is posting quarterly earnings report. Financial reporting day has an additional risk for stock investors as the information posted can gap up or down the shares price with very low liquidity and not honouring your buy or stop-loss orders. You can uncover more information about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.endava.com.

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