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Annaly Capital Management, Inc. (NLY)

NLY stock forecast: buy or sell

Close on Sep 25th, 2020
$7.28 0.02%
3 months performance
0.14%
Published: September 27th, 2020 - 17:26

NLY stock outlook

  • Annaly Capital Management stock grew 1.96% to close at $7.28 on the stock market on Friday.
  • From the chart point view, price is drawing an scaled downtrend since mid-August with lower tops and lower bottoms. shares price lost a -5.7% since the downtrend started.
  • Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets.

Important:
The comments expressed in this post are personal and not recommendations for you to buy or sell shares. The author of this document does not have an understanding of the specific circumstances of the reader, his or her financial statements 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 posted for educative reasons only

NLY stock charts

Should I buy Annaly Capital Management 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 NLY stock a buy?

Currently, Annaly Capital Management stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean NLY will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Annaly Capital Management stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies give us the ability us to avoid impulsive decisions based on our feelings or the buzz that surrounds the market. When selling, as well as buying, our setups are very easy to use and are only applicable for selling shares you already own, not for selling short Annaly Capital Management stock

As a rule of thumb, you should never mantain a trading operation that shows a losses greater than those expected by the time of the buy. When to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell Annaly Capital Management stock?

In the current situation of Annaly Capital Management there is not any eligible sell setup, so Annaly Capital Management stock holders with operations in green can keep their positions

Price lost SMA50 level

On Wednesday, price broke down the 50-day MA showing that the previous uptrend is likely to have ended. This is a good moment to check your current setup for this position and see if it's time to sell

Analysts' recommendations to buy or sell Annaly Capital Management 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 last 30 days for Annaly Capital Management

Technical analysis

Annaly Capital Management continues trending lower since mid-August, and has droppped a -5.7%. The stock drew 2 consecutive lower tops

SMAs overview

Moving averages are simple tools for investors to gauge market 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

NLY SMAs chart

Supports and resistances

Traders use support and resistance levels to spot price points on a chart that may act as glass ceiling, preventing the price of shares to move in certain direction. Supports are levels where the price tends to stop as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue falling until approaching another support level. In contrast, a resistance level is where the price tends to find resistance as it moves up. Likewise, the price is more likely to "rebound" at this level, and if it finally breaches this level, the price will rise more easily until it hits the next resistance

The current resistances are:

  • R1: $7.38 (1.37% above)
  • R2: $7.42 (1.92% above)
  • R3: $7.47 (2.61% above)
  • The current support levels are:

  • S1: $7.16 (-1.65% below)
  • S2: $7.14 (-1.92% below)
  • S3: $7.09 (-2.61% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are lines that fluctuate around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted 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

    Since the price surpassed the upper band on September 17, the price sliced by 5.08%. Since the price broke down the lower band on Thursday, the price bounced off by 3.85%. The price is trading very close to the lower Bollinger band, signaling some level of oversold in recent sessions. This is not a buy point, as price can trade in these levels for many days and weeks

    NLY RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 in late July after just crossing to the overbough zone for 1 day (weak signal). The RSI reading on Friday was 46.36. Since RSI lost the overbought zone, Annaly Capital Management price sank a 2.67%

    NLY RSI chart

    Earnings and financials

    NLY had the earnings call and presented the second-quarter report in late July. NLY posted 2nd-quarter earnings of $0.27 per share on revenue of $2.4 billion. The market estimate was $0.22 per share on revenue of $389.6 million.

    This compares to earnings of $0.25 per share same quarter last year, so posted EPS means an improvement of 8%. Looking at revenue, figures skyrocketed a 258.3% compared to $-15,424,300,000.00 same quarter a year ago.

    NLY releases financial report on late next October. Forecasted per-share earnings of %s for this quarter is $0.26. If you hold or you are thinking of buying NLY shares, you must be on alert as the financial reporting day usually has a higher than usual volatility, and price can jump up or down with very low liquidity and not respecting your buy/stop-loss orders. You can obtain more information about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.annaly.com.

    NLY revenues and profits chart