GRAVITY Co. Ltd. (GRVY)

GRAVITY stock forecast: buy or sell

GRAVITY stock outlook

  • GRAVITY stock sank -4.06% to close at $60.00 on the stock market today.
  • The stock is configuring an uptrend pattern since mid-March, when it bottomed at $21.49. Up to date, shares made a 179.2% profit since the beginning of this rally
  • Gravity Co., Ltd. develops, publishes, and distributes online games in South Korea, Japan, the United States, Canada, Taiwan, the Philippines, Thailand, Indonesia, Hong Kong, and internationally.
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Important note:
The comments written in this post are personal and not recommendations for you to buy or sell stocks. The author of this report does not have any knowledge of the particular conditions of the reader, his or her own 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 expressed for educative reasons only

GRAVITY stock chart overview

Should I buy GRAVITY 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 GRVY stock a buy?

Currently, GRAVITY stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for GRVY 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 GRAVITY stock?

"To sell or not to sell", if you are holding GRAVITY stock?. Trading strategies give us the ability us to avoid impulsive decisions based on our personal moods or the noise that surrounds the market. We like very simple setups to guide us on when is a good time to sell our shares. Be aware that these setups are not intended for shorting GRAVITY stock

As a golden rule, you should never hold an investment that yields higher than expected losses at the time of the buy. The timing to sell your stock should always be ruled by the stop-loss (automatic or manual)

Is it time to sell GRAVITY stock?

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

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Analysts' recommendations to buy or sell GRAVITY 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 published in the previous 30 days for GRAVITY

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Technical analysis

Since in mid-March, GRAVITY has been printing an uptrend that so far marked an amazing 179.2%. Rising peaks and troughs can be seen easily on a chart and how price gave very few entry points on the breakouts. Latest pullback was last Wednesday, when price bounced at $49.50. Now, the price moves in a consolidation between its last top ($64.90) and its last bottom ($49.50)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend 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

Technical analysts use support and resistance levels to find price points on a chart that may behave as barriers, preventing the price of an asset to move up or down. A support level is a level where the price tends to find support as it falls. 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 descending until meeting another support level. On the contrary, resistance levels are where the price may find resistance as it rises. Likewise, this means that the price is more liable to "bounce off" at this level, and if it finally breaches this level, it will rally more easily until it approaches the next resistance

The current resistances are:

  • R1: $64.80 (8% above)
  • R2: $64.90 (8.17% above)
  • R3: $74.85 (24.75% above)
  • The current supports are:

  • S1: $57.50 (-4.17% below)
  • S2: $54.49 (-9.18% below)
  • S3: $53.00 (-11.67% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. It comprises 3 bands that are plotted 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

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price movements to spot when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI moves between 0% and 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    The RSI dropped below the overbought level of 70 on June 22 after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 58.02. GRAVITY shares tanked a 2.71% since that level was lost

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    Earnings and financials

    GRAVITY Co. Ltd. (GRVY) reported adjusted EPS for the fiscal first-quarter that met Market expectations. Quarterly EPS was $0.56 per share vs. $0.00. The company reported turnover was $0.00 in line with analysts' forecasts as well.

    This compares to earnings of $0.00 per share a year ago, so current EPS is an increase of -. Turnover tanked a -99.9% on an annualized basis in the first-quarter, from $67.5B to $64.9M last quarter.

    GRAVITY is presenting quarterly earnings report on early next August. Market analysts analysts estimate earnings of %s a share of $0.00, that is a 100% less than previous quarter. Financial reporting day has an additional risk for stock investors as the data published can gap up or down the stock price with exceptionally low liquidity and not honouring your buy/stop-loss orders. Have a look company's website to confirm time and details about the earnings call and the earnings report.

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