JOYY Inc. (YY)

YY stock forecast: buy or sell

YY stock outlook

  • YY closed on Friday at $73.46 after dropping a -13.72% and broke a streak of 5 sessions in green.
  • YY is presenting its earnings report on Tuesday next week
  • The price is currently below the lower Bollinger band, which often indicates a near-term bounce that you should not try to trade
  • JOYY Inc., through its subsidiaries, operates a social media platform in the People's Republic of China and internationally.
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Disclaimer:
The viewpoints contained in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not have an understanding of the particular scenarios 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 Thoughts are expressed for learning reasons only

YY stock chart overview

Should I buy YY 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 YY stock a buy?

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

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making impulsive decisions based on our personal moods or the buzz surrounding the market. Our trading system selects very simple setups to guide us on when is a good time to sell a stock. Be aware that these setups are not intended for selling short YY stock

A golden rule is that you should not hold an operation that produces losses greater than those expected upon the buy. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell YY stock?

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

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Analysts' recommendations to buy or sell YY 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 YY

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Technical analysis

SMAs overview

Moving averages are simple tools for investors to detect stock 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

Market investors use support and resistance levels as a way to identify price points in the stock price action that may behave as obstacles, preventing the price of shares to move in certain direction. A support level is a level where the price may stop as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue falling until finding another support level. On the contrary, resistances are where the price may find a curb as it moves up. Likewise, the price is more liable to "bounce off" at this level, and if it finally ruptures this level, it will climb easily until it hits the next resistance

The current resistance levels are:

  • R1: $74.39 (1.27% above)
  • R2: $75.17 (2.33% above)
  • R3: $77.10 (4.96% above)
  • The current supports are:

  • S1: $72.00 (-1.99% below)
  • S2: $70.61 (-3.88% below)
  • S3: $70.06 (-4.63% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. The Bollinger Bands are lines that run around a moving average, varying 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

    Price readings above or below the Bollinger Bands tell us that the price has has trended strongly to extreme upward or downward values. In this case, the price is lower the upper band, which should mean a near-term rebound (at least) until it is back above the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to plot the current and past 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 late June after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Friday was 39.27. YY shares dropped a 20.95% since then

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    Earnings and financials

    YY presents financial report on Tuesday next week. Market analysts analysts expect earnings of %s a share of $0.68, that is a 89.85% lower than previous quarter. If you own or you are looking to buy YY stock, you must be aware that the earnings reporting day usually has a higher than usual volatility, and price can soar and sink with unsually low liquidity and not respecting your buy or stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

    YY hosted the quarterly financial call and presented the Q1 report in mid-March. YY topped analysts estimates and posted an earnings per share (EPS) of $6.70, that is a 3.55% surprise compared to the estimates of $6.47. Reported sales were $7.1 billion compared to estimates of $6.7 billion.

    In comparing, the EPS for the same quarter last year was $12.86, so reported EPS means a drop of -47.9%. Turnover skyrocketed a 49.57% on an annualized basis in the Q1, from $4.8B to $7.1B last quarter. YY reported three YoY quarterly positive results, increasing revenue by 1780.15% from $380.3M on 2017-Q2.

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