Exterran Corporation (EXTN)

Exterran stock forecast: buy or sell

Exterran stock outlook

  • Exterran stock fell -2.45% to close at $4.78 on the stock market on Friday.
  • The price is currently below the lower Bollinger band, which often indicates a near-term bounce that you better not try to trade
  • The stock is configuring an uptrend pattern since early April, when it bottomed at $3.24. This rally marked a 47.53% gain
  • Exterran Corporation, a systems and process company, provides various solutions in the oil, gas, water, and power markets worldwide.
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The comments contained in this post are personal and not recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the individual situations 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 expressed for informational motives only

Exterran stock chart overview

Should I buy Exterran 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 EXTN stock a buy?

In the current situation of Exterran there is not any eligible buy setup. This doesn't mean we expect a selloff for EXTN 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 Exterran stock?

"To sell or not to sell", if you are holding Exterran shares?. Trading strategies let us to avoid rash decisions based on our personal sentiments or the noise surrounding the market. We like very simple setups to guide us on when is a good moment to sell a stock. Be aware that these setups should not be used for selling short EXTN stock

A golden rule is that you must never keep an operation that shows a higher than expected losses 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 Exterran stock?

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

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Analysts' recommendations to buy or sell Exterran 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 previous month we couldn't find any rating for Exterran

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Technical analysis

Since in early April, Exterran has been printing an uptrend that so far marked an amazing 47.53%. The price action shows rising tops and bottoms, and along the way gave very few buying opportunities for those who wanted to enter. Latest low was in mid-May, when price bounced at $4.36. Currently, it moves in a consolidation between its last top ($8.93) and its last bottom ($4.36)

SMAs overview

Moving averages are simple indicators for traders to detect market momentum. A moving average is the average price of a stock over a set period of time. 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

Supports and resistances

Investors use supports and resistances to find price points on a chart that may work as obstacles, containing the price of a stock to move up or down. A support level is a level where the price tends to stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue declining until meeting another support level. In contrast, resistances are where the price may find opposition as it moves up. Again, this means that the price is more liable to "rebound" at this level, and if it finally breaks this level, the price will rally more easily until it finds the next resistance

The current resistances are:

  • R1: $5.06 (5.86% above)
  • R2: $7.20 (50.63% above)
  • R3: $8.56 (79.08% above)
  • The current supports are:

  • S1: $4.56 (-4.6% below)
  • S2: $4.36 (-8.79% below)
  • S3: $3.24 (-32.22% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known studio created by John Bollinger. Basically, the Bollinger Bands are lines that run around a moving average, ranging the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Price readings both above or below the Bollinger Bands tell us that the price has followed a strong trend that has led to extreme highs or lows. In this case, the price is below the upper band, which should mean a short-term bounce (at least) until it is back above the band

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price movements to identify when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI fluctuates in a range between 0% and 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 1978

    The RSI dropped below the overbought level of 70 in mid-June after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Friday was 33.99. Since RSI lost the overbought zone, Exterran shares sank a 44.99%

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    Earnings and financials

    In mid-May, Exterran hosted the quarterly financial call and released the 1st-quarter report. Exterran presented Q1 earnings of $-0.52 per share on sales of $210.4 million. The market estimate was $-0.36 per share on revenue of $212.6 million.

    Same quarter one year ago, reported EPS was $-0.15, so recently posted EPS means a drop of -246.67%. Looking at revenues, figures tanked a -40.15% compared to $351.5M same quarter last year.

    Exterran is hosting the quarterly earnings call on early next August. Estimated earnings of %s per-share for this quarter is $-0.91. If you hold or you are planning to buy Exterran shares, be on alert as the earnings reporting day usually has a very high volatility, and price can jump up or down with unsually low liquidity and not respecting your buy/stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

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