Kronos Worldwide Inc (KRO)

KRO stock forecast: buy or sell

KRO stock outlook

  • Kronos Worldwide stock climbed 1.83% to close at $10.58 on the stock market today, after 3 consecutive sessions in red.
  • The price is currently over the upper Bollinger band, which is usually an indicator of a short-term correction
  • From the chart point view, price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. This uptrend marked a 57.91% gain
  • Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally.
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Important:
The opinions contained in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not know the specific positions of the reader, his or her own financial statements 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 Viewpoints are published for educative purposes only

KRO stock chart overview

Should I buy Kronos Worldwide 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 KRO stock a buy?

Currently, Kronos Worldwide stock matches one trading strategy:

Uptrend buy setup

Kronos Worldwide stock continues to trend higher since in mid-March and has marked an amazing 57.91% gain. Price marked a pull back in this uptrend at $9.19 on June 26, and since then it bounced off a 15.13%. Now, it's just 5.77% away from breaking out above its last top and resume the uptrend. The new buy point is therefore at $11.19. If you decide to enter this trade, the suggested stop loss is at $10.07

Buy setupBuy pointStop lossRisk
Uptrend buy setup$11.19$10.0710%
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Should I sell Kronos Worldwide stock?

When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the correct moment to sell and get your benefits. As when we have to buy shares, choosing when is appropiate time to sell is not a whimsy decision, and we must adhere our own trading strategy. When selling, as well as buying, detailed strategies are very easy to use and are only valid for selling stocks you already own, not for selling short Kronos Worldwide stock

As a golden rule, you should never keep an open trade that yields higher than expected losses upon purchase. The moment to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell Kronos Worldwide stock?

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

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Analysts' recommendations to buy or sell Kronos Worldwide 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 Kronos Worldwide

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Technical analysis

Kronos Worldwide stock started an uptrend in mid-March, and gained a gorgeous 57.91%. During this uptrend, the price gave some buy points on the breakouts. Latest pullback was on June 26, when price bounced at $9.19. Like in all uptrends, price needs to rest and currently price is consolidating the gains in a range between $11.19 and $9.19

SMAs overview

Moving averages are indicators for investors to detect market direction. 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. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Technical analysts use support and resistance levels to spot price points in the stock price action that tend to behave as obstacles, preventing the price of shares to move up or down. A support level is a level where the price may stop 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 is likely to continue falling until meeting another support level. On the contrary, resistances are where the price may find opposition as it moves up. Likewise, the price is more liable to "rebound" at this level, and if it finally ruptures this level, it will climb more easily until it hits the next resistance

The current resistance levels are:

  • R1: $10.67 (0.85% above)
  • R2: $10.70 (1.13% above)
  • R3: $10.74 (1.51% above)
  • The current supports are:

  • S1: $10.53 (-0.47% below)
  • S2: $10.50 (-0.76% below)
  • S3: $10.39 (-1.8% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established practice that was created by John Bollinger. In essence, the Bollinger Bands are bands that move around a moving average, ranging the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Price readings above or below the Bollinger Bands indicate that the price has has trended strongly to extreme highs or lows. For this case, the price is beyond the upper band, which should mean a near-term correction (at least) until it is below the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map 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 intended 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 the late 1970s

    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 today was 58.84. Since then, Kronos Worldwide stock sank a 4.6%

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    Earnings and financials

    Kronos Worldwide Inc (KRO) reported adjusted EPS for the fiscal Q1 that highly surpassed analysts' expectations. Quarterly EPS was $0.23 per share versus $0.15. This Q1 report means an earnings surprise of 53.33%. On the contrary, the company said revenue for this quarter was $421.0 million in line with the market estimates.

    This compares to earnings of $0.26 per share same quarter last year, so reported EPS means a reduction of -11.54%. Sales just moved on an annualized basis in the 1st-quarter, from $436.8M to $421.0M last quarter.

    KRO will host the quarterly earnings call on early next August. Estimated Earnings per Share for this quarter is $0.06. If you hold or you are planning to buy KRO stock, be aware that the earnings reporting day usually has a very high volatility, and price can jump up or down with exceptionally low liquidity and not respecting your buy or stop-loss orders. You can obtain more details about the earnings call and the financial reports on the Investor Relations section of its website: http://kronostio2.com.

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