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Ellington Financial Inc. (EFC)

EFC stock forecast: buy or sell

Close on Sep 28th, 2020
$12.74 0.02%
3 months performance
0.12%
Published: September 29th, 2020 - 6.30am EDT

EFC stock outlook

  • Ellington Financial stock went up 1.76% to close at $12.74 on the stock market today, after 3 consecutive sessions in red.

Please read:
The thoughts given in this post are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the particular scenarios of the reader, his or her own 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 Viewpoints are posted for education motives only

EFC stock charts

Should I buy Ellington Financial 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 EFC stock a buy?

Currently, Ellington Financial stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean EFC will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Ellington Financial stock?

"To sell or not to sell", if you are holding Ellington Financial shares?. In the same way as when we have to buy shares, deciding when is the best time to sell is not a fickle decision, and we must adhere our own trading style. We like very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups should not be used for selling short Ellington Financial stock

As a golden rule, you should not hold a trading operation that produces losses greater than those expected at the time of the buy. The timing to sell your stock should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Ellington Financial stock?

In the current situation of Ellington Financial there is not any eligible sell setup, so Ellington Financial stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Ellington Financial 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

We don't have any rating posted in the last month for Ellington Financial

Technical analysis

SMAs overview

Moving averages are simple tools for investors to gauge direction. 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

EFC SMAs chart

Supports and resistances

Investors use supports and resistances to identify price points in the stock price action that may work as obstacles, containing the price of shares to move in certain direction. Supports are levels where the price may find support 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 will probably continue falling until approaching another support level. In contrast, resistances are where the price tends to find resistance as it moves up. Likewise, this means that the price is more liable to "rebound" at this level, and if it finally crosses this level, the price will climb more easily until it hits the next resistance

The current resistance levels are:

  • R1: $12.74 (0% above)
  • R2: $12.81 (0.55% above)
  • R3: $13.11 (2.9% above)
  • The current supports are:

  • S1: $12.64 (-0.78% below)
  • S2: $12.34 (-3.14% below)
  • S3: $12.33 (-3.22% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. By essence, the Bollinger Bands are lines that move around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn 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 September 18, the price corrected downwards by 3.26%. The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell signal, as price can trade in these levels for many days and weeks

    EFC RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price action to reveal when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI fluctuates from 0 to 100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by investors

    The RSI has been between the overbought and oversold zones for several weeks, and therefore, without this indicator really being helpful in making any decisions.

    EFC RSI chart

    Earnings and financials

    Ellington Financial Inc. (EFC) published Q2 earnings of $0.39 per share, highly beating the Market consensus estimate of $0.27 per share. This quarterly report means an earnings surprise of 44.44%. Forecasted turnover for Q2 was $21.1 million but Ellington Financial strongly enhanced by 119.37%, reporting $46.2 million.

    Compared to the same quarter one year ago, EPS was $0.46, so reported EPS means a drop of -15.22%. Looking at revenue, figures exploded a 131.25% compared to $20.0M same quarter 12 months ago.

    EFC posts quarterly earnings report on early next November. Expected earnings of %s a share for this quarter is $0.31. Financial reporting day has a more than usual risk for investors as the information disclosed can soar and sink the stock price with very low volume and not respecting your buy or stop-loss orders. You can obtain more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.ellingtonfinancial.com.

    EFC revenues and profits chart