Two Harbors Investments Corp (TWO)

TWO stock forecast: buy or sell

TWO stock outlook

  • Two Harbors Investment stock skyrocketed 7% to close at $5.50 on the stock market on Friday.
  • Two Harbors Investment posted its financial report on Wednesday
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Please read:
The thoughts given in this post are personal and not recommendations for you to buy or sell stocks. The author of this article does not have any knowledge of the particular conditions of the reader, his or her own 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 provided for informational purposes only

TWO stock chart overview

Should I buy Two Harbors Investment 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 TWO stock a buy?

In the current situation of Two Harbors Investment there is not any eligible buy setup. This doesn't mean TWO 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 Two Harbors Investment stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Like when we have to buy shares, determining when is the best time to sell is not a whimsical decision, and we must follow our own trading style. Our trading system selects very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies should not be used for shorting Two Harbors Investment stock

As a rule of thumb, you must never hold an investment that generates higher than expected losses upon the buy. When to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Two Harbors Investment stock?

In the current situation of Two Harbors Investment there is not any eligible sell setup, so Two Harbors Investment stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Two Harbors Investment 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 brokerage rating was published for Two Harbors Investment

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Two Harbors Investment ratings

Brokerage firmRating
Jul 28th, 2020
JPMorgan Chase & Co. BuyNeutral

Technical analysis

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). 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

Investors use support and resistance levels to identify price points on a chart that tend to act as barriers, containing the price of an asset to move up or down. 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 meeting another support level. On the other hand, resistances are where the price tends to find opposition as it rises. In the same manner, the price is more likely to "rebound" at this level, and if it finally breaks this level, the price will rally easily until it meets the next resistance

The current resistances are:

  • R1: $5.58 (1.45% above)
  • R2: $5.77 (4.91% above)
  • R3: $6.35 (15.45% above)
  • The current support levels are:

  • S1: $5.12 (-6.91% below)
  • S2: $4.95 (-10% below)
  • S3: $4.63 (-15.82% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. The Bollinger Bands are bands that run around a moving average, ranging the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price movements to identify when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI fluctuates in a range from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    The relative strength (RSI) has been between the levels of 70 and 30 for many weeks, and therefore, without this indicator really being helpful in making any decisions.

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    Earnings and financials

    On Wednesday, TWO hosted the shareholders call and posted the Q2 report. The consensus earnings estimate is a earnings of %s a share of $0.13, that is a -50% lower than Q1 quarter.

    By comparison, the EPS for the same quarter last year was $0.39, so current EPS is a decrease of -100%. Revenue sank a -1620.11% on an annualized basis in the 2nd-quarter, from $82.0M to $-12,458,800,000.00 last quarter.

    TWO is hosting the Q3 earnings call next November. Market analysts analysts predict an earnings per share (EPS) of $0.00, that is a 0% than previous quarter. If you own or you are looking to buy TWO shares, you must be vigilant as the financial reporting day usually has a higher than usual volatility, and price can gap up or down with exceptionally 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.twoharborsinvestment.com.

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