Red Violet Inc. (RDVT)

Red Violet stock forecast: buy or sell

Red Violet stock outlook

  • Red Violet closed yesterday at $16.62 after rising a 2.4% breaking a streak of 5 sessions in negative.
  • Red Violet, Inc., a software and services company, specializes in data fusion and analytics providing cloud-based mission-critical information solutions to enterprises in the United States.
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Disclaimer:
The comments expressed in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the particular situations of the reader, his or her finances 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 Thoughts are published for education reasons only

Red Violet stock chart overview

Should I buy Red Violet 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 RDVT stock a buy?

In the current situation of Red Violet there is not any eligible buy setup. This doesn't mean we expect a selloff for RDVT in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Red Violet stock?

"To sell or not to sell", if you are holding Red Violet stock?. Just as when we have to buy shares, determining when is the best time to sell is not a capricious decision, and we must follow our own trading style. Our trading system selects very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies are not intended for shorting Red Violet stock

As a rule of thumb, you should never hold an open trade that leads to greater losses than those expected by the time of purchase. The timing to sell your stock always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Red Violet stock?

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

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Analysts' recommendations to buy or sell Red Violet 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 posted in the previous 30 days for Red Violet

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Technical analysis

SMAs overview

Moving averages are simple indicators for investors to measure 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

Supports and resistances

Traders use support and resistance levels as a way to identify price points on a chart that may behave as obstacles, containing the price of shares to move in certain direction. 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 finding another support level. In contrast, resistances are where the price tends to find resistance as it rises. In the same way, this means that the price is more likely to "rebound" at this level, and if it finally breaches this level, the price will rally easily until it finds the next resistance

The current resistances are:

  • R1: $16.73 (0.66% above)
  • R2: $16.83 (1.26% above)
  • R3: $17.12 (3.01% above)
  • The current supports are:

  • S1: $15.55 (-6.44% below)
  • S2: $15.40 (-7.34% below)
  • S3: $13.88 (-16.49% below)
  • Bollinger bands

    So-called Bollinger bands are a widely known technique introduced by John Bollinger. It is composed of 3 lines 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

    Since the price broke down the lower band on June 26, the price has bounced off by 5.99%

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to plot the current and previous weakness or strength 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 has been between the overbought and oversold zones for many weeks, and therefore, without this indicator really serving to help us make any decisions.

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    Earnings and financials

    Red Violet had the quarterly financial call and presented the 1st-quarter report in mid-May.

    This compares to earnings of $-0.13 per share same quarter last year, so posted EPS is 0%. Looking at revenues, figures skyrocketed a 62.3% compared to $5.7M year over year.

    Red Violet is presenting financial report on mid next August. Market analysts analysts forecast earnings of %s a share of $0.00, that is a 100% more than previous quarter. Financial reporting day has an additional risk for stock investors as the information disclosed can gap up or down the price with exceptionally low liquidity and not honouring your buy/stop-loss orders. You can probably find more information about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.redviolet.com.

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