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Graf Industrial Corp. (GRAF)

Graf Industrial stock forecast: buy or sell

Close on Sep 28th, 2020
$24.42 0.20%
3 months performance
0.61%
Published: September 29th, 2020 - 7.31am EDT

Graf Industrial stock outlook

  • Graf Industrial closed yesterday at $24.42 (19.59%) prior to presenting earnings at
  • Graf Industrial released its earnings report
  • From the chart point view, price is drawing a scaled uptrend since last March with higher tops and higher bottoms. This uptrend marked a 147.42% gain
  • Graf Industrial Corp. does not have significant operations.

Important note:
The comments given in this post are personal and not recommendations for you to buy or sell shares. The author of this article does not have any knowledge of the specific situations 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 Thoughts are provided for learning purposes only

Graf Industrial stock charts

Should I buy Graf Industrial 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 GRAF stock a buy?

In the current situation of Graf Industrial there is just one buy setup eligible:

Uptrend buy setup

Graf Industrial stock continues to trend higher since last March and has marked an amazing 147.42% gain. Price marked a local bottom in this uptrend at $17.30 last Thursday, and since then it bounced off a 41.16%. Now, it's only 33.09% away from breaking out above its last top and resume the uptrend. The new entry point is therefore at $32.50. If you decide to enter this trade, the suggested stop loss is at $29.25

Buy setupBuy pointStop lossRisk
Uptrend buy setup$32.50$29.2510%

Should I sell Graf Industrial stock?

Do you know when is it time to sell Graf Industrial stock?. Similarly to when we have to buy shares, deciding when is appropiate time to sell is not a whimsical decision, and we must follow our own trading style. When selling, as well as buying, detailed setups are very easy to use but are only applicable for selling stocks you already own, not for selling short GRAF stock

A golden rule is that you must never hold an investment that results in losses greater than those expected upon the buy. The timing to sell your stock 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 hold Graf Industrial shares and your operation is in profit probably is not time to sell now

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

We don't have any rating posted in the previous month for Graf Industrial

Technical analysis

Since last March, Graf Industrial has been drawing an uptrend that by now marked an amazing 147.42%. The price line shows higher peaks and higher lows, and along the way gave some buy points for those who wanted to enter. Latest pullback was last Thursday, when price bounced at $17.30. Currently, the price swings in a consolidation between its last top ($32.50) and its last bottom ($17.30)

SMAs overview

Moving averages are simple indicators for traders to gauge market 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

GRAF SMAs chart

Supports and resistances

Investors use supports and resistances as a way to identify price points on a chart that may behave as glass ceiling, containing the price of an asset to move up or down. 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 meeting another support level. On the other hand, resistances are where the price tends to find resistance as it rises. In the same manner, this means that the price is more likely to "bounce off" at this level, and if it finally ruptures this level, it will rally more easily until it meets the next resistance

The current resistance levels are:

  • R1: $32.50 (33.09% above)
  • The current supports are:

  • S1: $24.35 (-0.29% below)
  • S2: $17.30 (-29.16% below)
  • S3: $13.01 (-46.72% below)
  • Bollinger bands

    So-called Bollinger bands are a popular studio created by John Bollinger. It is made up of 3 bands that are 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

    GRAF RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price movements to identify when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI ranges between 0 and 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 dropped below the overbought level of 70 on September 14 after just crossing to the overbough zone for 1 day (weak signal). The RSI reading yesterday was 54.41. Since then, Graf Industrial stock dropped a 15.5%

    GRAF RSI chart

    Earnings and financials

    Graf Industrial hosted the quarterly shareholders event and presented the Q2 report.

    Compared to the same quarter last year, EPS was $0.01, so posted EPS means a drop of -100%. Revenue merely changed on an annualized basis in the 2nd-quarter, from $0.00 to $0.00 last quarter.

    Graf Industrial is releasing earnings report. Financial reporting day has a more than usual risk for stock investors as the results posted can gap up or down the shares price with exceptionally low liquidity and not honouring your buy/stop-loss orders. Check company's website to confirm time and details on the earnings call and the earnings report.

    GRAF revenues and profits chart