Kornit Digital Ltd. (KRNT)

Kornit Digital stock forecast: buy or sell

Kornit Digital stock outlook

  • Kornit Digital closed yesterday at $52.33 after only changing a -0.4%.
  • Price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. Up to date, the uptrend made a 136.04% gain since the beginning of this rally
  • Kornit Digital Ltd. develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry worldwide.
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Important:
The viewpoints written in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this paper does not have any knowledge 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 Comments are provided for general educational reasons only

Kornit Digital stock chart overview

Should I buy Kornit Digital 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 KRNT stock a buy?

In the current situation of Kornit Digital there is just one buy setup eligible:

Uptrend buy setup

Kornit Digital stock is in an uptrend since in mid-March that so far has marked a gorgeous 136% gain. Price marked a pull back in this uptrend at $45.33 on June 15, and since then it bounced off a 15.44%. Now, it's only 1.2% away from breaking out above its last top and resume the uptrend. The new entry point is therefore at $52.96. If you decide to enter this trade, the suggested stop loss is at $47.66

Buy setupBuy pointStop lossRisk
Uptrend buy setup$52.96$47.6610%
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Should I sell Kornit Digital stock?

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

A golden rule is that you must never hold a trading operation that produces higher than expected losses by the time of purchase. The moment to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Kornit Digital stock?

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

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Analysts' recommendations to buy or sell Kornit Digital 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 last 30 days, just one analyst rating was published for Kornit Digital

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Kornit Digital ratings

Brokerage firmRating
Jun 22nd, 2020
Craig Hallum Neutral

Technical analysis

Since in mid-March, Kornit Digital has been drawing an uptrend that so far marked an amazing 136.04%. The chart shows higher peaks and higher lows, and along the way gave some buying opportunities for those who wanted to invest. Latest pullback was on June 15, when price bounced at $45.33. Like in all uptrends, price needs to take breath and currently price is consolidating the gains in a range between $52.96 and $45.33

SMAs overview

A favorite tool of many technical analysts 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

Investors use support and resistance levels to identify price points in the stock price action that may behave as glass ceiling, containing the price of shares to move up or down. A support level is a level where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it will probably continue descending until finding another support level. On the other hand, resistances are where the price tends to find opposition as it moves up. Likewise, the price is more likely to "bounce off" at this level, and if it finally breaks this level, it will rally easily until it hits the next resistance

The current resistance levels are:

  • R1: $52.96 (1.2% above)
  • The current support levels are:

  • S1: $45.33 (-13.38% below)
  • S2: $45.21 (-13.61% below)
  • S3: $35.73 (-31.72% below)
  • Bollinger bands

    The so-called Bollinger bands are a popular technical strategy introduced by John Bollinger. It consists 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 June 30, the price sliced by 1.99%. The price is trading near to the upper Bollinger band, signaling 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

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to plot the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for 1 day (weak signal). The RSI value yesterday was 61.42. Since RSI lost the overbought zone, Kornit Digital price went up a 1.61%

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    Earnings and financials

    Kornit Digital Ltd. (KRNT) posted EPS for the fiscal 1st-quarter that grossly lowered analysts' expectations. Quarterly EPS was $-0.22 per share vs. $-0.09. This quarterly report means an earnings surprise of -144.44%. On the contrary, reported sales were $26.8 million, consistent with the market estimates.

    By comparison, the EPS for the same quarter last year was $0.03, so current EPS means a drop of -833.33%. Turnover dropped a -29.77% on an annualized basis in the 1st-quarter, from $38.2M to $26.8M last quarter.

    Kornit Digital is hosting the quarterly earnings call on early next August. Market expects a per-share earnings of %s of $-0.07, compared to previous quarter that was $-0.22. If you hold or you are planning to buy Kornit Digital stock, be on alert as financial reporting day usually has a very high volatility, and price can soar and sink with unsually low liquidity and not honouring your buy or stop-loss orders. Check company's website to confirm time and details about the earnings call and the earnings report.

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