Graf Industrial Corp. (GRAF)

Graf Industrial stock forecast: buy or sell

Graf Industrial stock outlook

  • Graf Industrial closed yesterday at $20.10 (0%) prior to presenting earnings at
  • Price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. This rally marked a 103.65% gain
  • Graf Industrial Corp. does not have significant operations.
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Important:
The thoughts written in this article are personal and not recommendations for you to buy or sell shares. The author of this text does not have an understanding of the specific scenarios of the reader, his or her finances 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 published for general educational reasons only

Graf Industrial stock chart overview

Should I buy Graf Industrial 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 GRAF stock a buy?

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

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Should I sell Graf Industrial stock?

When you own a stock with some profit, it's really hard to decide the good moment to sell and get your benefits. As when we have to buy shares, determining when is appropiate to sell is not a whimsy decision, and we must follow our own trading strategy. Our trading system selects very simple setups to guide us on when is a good time to sell our shares. Be aware that these setups should not be used for selling short GRAF stock

As a golden rule, you should never keep a trading operation that generates greater losses than those expected upon the buy. The timing to sell shares should always be ruled by the stop-loss (automatic or manual)

Is it time to sell Graf Industrial stock?

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

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Analysts' recommendations to buy or sell Graf Industrial 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 30 days we couldn't find any rating for Graf Industrial

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Technical analysis

Graf Industrial shares started an uptrend in mid-March, and gained an amazing 103.65%. The price shows rising peaks and troughs, and along the way provided very few entry points for those who wanted to enter. Latest low was in mid-April, when price bounced at $10.11. Like in all uptrends, price needs to take breath and currently price is consolidating the gains in a range between $24.35 and $10.11

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use support and resistance levels to find price points in the stock price action that may act as obstacles, containing the price of a stock to move up or down. 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. Nevertheless, if the price breaks down the support, it is likely to continue falling until meeting another support level. On the other hand, resistances are where the price tends to find resistance as it rises. Again, this means that the price is more likely to "bounce off" at this level, and if it finally ruptures this level, it will climb easily until it finds the next resistance

The current resistance levels are:

  • R1: $24.35 (21.14% above)
  • The current supports are:

  • S1: $10.49 (-47.81% below)
  • S2: $10.44 (-48.06% below)
  • S3: $10.21 (-49.2% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. It is made up of 3 bands that are outlined 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 surpassed the upper band on Thursday, the price has been corrected downwards by 3.83%. The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, 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 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. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on Tuesday after just crossing to the overbough zone for a single day (weak signal). The RSI value yesterday was 65.97. Since then, Graf Industrial price rose a 2.13%

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    Earnings and financials

    Graf Industrial Corp. (GRAF) posted quarterly earnings of $-0.08 per share, meeting the Wall St consensus estimate of $0.00 per share. The company said turnover for Q1 was $0.00 consistent with analysts' estimates as well.

    This compares to earnings of $-0.06 per share a year ago, so current EPS is a drop of -33.33%. Looking at turnover, figures slightly changed compared to $0.00 same quarter a year ago.

    Graf Industrial is hosting the earnings call. If you hold or you are thinking of buying Graf Industrial shares, be aware that the earnings reporting day usually has a higher than usual volatility, and price can soar and sink with unsually low liquidity and not honouring your buy or stop-loss orders. You can find more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.grafacq.com.

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