Marchex Inc. (MCHX)

Marchex stock forecast: buy or sell

Marchex stock outlook

  • Marchex stock exploded 6.45% to close at $1.65 on the stock market today, after 4 consecutive sessions in negative.
  • The price is currently higher than the upper Bollinger band, which is usually an indicator of a near-term correction
  • Marchex, Inc. operates as a call analytics company that helps businesses connect, drive, measure, and convert callers into customers.
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Important note:
The thoughts written in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not know the particular positions 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 expressed for informational purposes only

Marchex stock chart overview

Should I buy Marchex 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 MCHX stock a buy?

Currently, Marchex stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean MCHX 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 Marchex stock?

When you are a novel trader and you own a stock with some profit, it's really hard to decide the good moment to sell and get your benefits. Trading strategies help us to avoid rash decisions based on our personal moods or the noise that surrounds the market. When selling, as well as buying, our strategies are very simple to use and are only valid for selling shares in your porfolio, not for selling short Marchex stock

As a rule of thumb, you should never hold an open trade that shows a greater losses than those expected upon purchase. The moment to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell Marchex stock?

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

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Analysts' recommendations to buy or sell Marchex 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 Marchex

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Technical analysis

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. 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 on a chart that may work as glass ceiling, preventing the price of shares to move up or down. Supports are levels where the price may find support as it falls. 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 declining until meeting another support level. On the other side, resistance levels are where the price tends to find opposition as it rises. Again, this means that the price is more liable to "rebound" at this level, and if it finally breaches this level, it will climb more easily until it approaches the next resistance

The current resistances are:

  • R1: $1.83 (10.91% above)
  • R2: $1.96 (18.79% above)
  • R3: $2.10 (27.27% above)
  • The current supports are:

  • S1: $1.40 (-15.15% below)
  • S2: $1.23 (-25.45% below)
  • S3: $1.10 (-33.33% below)
  • Bollinger bands

    So-called Bollinger bands are a widespread technique created by John Bollinger. Essentially, the Bollinger Bands are bands that move around a moving average, varying 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

    When the price moves out of the band (above the upper line or below the lower line) it signals that the price is currently having a very strong trend and therefore can correct the trend to the average. At this point, the price is above the upper band, which should mean a possible near-term adjustment (at least) until it is below the band

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price changes to spot when the share or financial asset is oversold or overbought. 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 1978 and since then it has been widely used by traders

    When the RSI stays for so long below 70 and above 30, without showing moments of overvaluation and undervaluation, the indicator becomes of little use, and we currently are in one of these situations.

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    Earnings and financials

    Q1 shareholders event was hosted by Marchex in mid-May after presenting the financial report. Marchex underperformed consensus earnings estimates and posted an EPS of $-0.06, that is a -100% lower than the estimates of $-0.03. Reported sales were $24.8 million compared to estimates of $23.3 million.

    Same quarter last year, reported EPS was $0.01, so current EPS means a drop of -700%. Revenue inched down a -6.13% on an annualized basis in the 1st-quarter, from $26.4M to $24.8M last quarter.

    Marchex posts quarterly earnings report on early next August. Market predicts earnings of %s a share of $-0.04, compared to Q1 that was $-0.06. If you own or you are thinking of buying Marchex stock, be careful as the financial reporting day usually has a higher than usual volatility, and price can gap up or down with unsually low liquidity and not respecting your buy or stop-loss orders. You can probably obtain more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.marchex.com.

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