Petro Matad Limited's stock price rose by 2.00% on Tuesday, November 12, 2024, moving from 2.50p to 2.55p. This marks the third consecutive day of gains for the stock. It will be interesting to see if this upward momentum continues or if the stock takes a short pause in the coming days. On the last trading day, the stock experienced an 8.51% fluctuation, with a low of 2.35p and a high of 2.55p. Over the past 10 trading sessions, the price has increased in 7 of them, gaining 13.84% in the last two weeks.
Volume declined by 4 million shares on the last trading day, with a total of 6 million shares changing hands, amounting to approximately £14.69 million in value. It’s important to note that declining volume while prices rise can indicate divergence, which may signal potential changes in market direction in the coming days.
The stock has broken out of a broad and declining short-term trend, suggesting a possible shift towards a slower rate of decline. This could be an early indication of a trend reversal. On any pullback, support is expected around the previous resistance level at 2.48p, which could provide a second opportunity for gains. According to fan theory, the next potential resistance level is 3.03p, which may act as a barrier and could be difficult to breach on the first attempt.
Petro Matad Limited’s stock currently shows buy signals from both short-term and long-term moving averages, providing a positive outlook. The short-term moving average is above the long-term average, reinforcing the overall buy signal. In the event of a pullback, support is expected around 2.47p and 2.38p, with a breakdown below these levels triggering sell signals.
Additionally, the 3-month Moving Average Convergence Divergence (MACD) also gives a buy signal. However, despite price gains on the last trading day, volume decreased, causing a divergence between price and volume, which could be an early warning of potential changes. This discrepancy suggests that the stock should be monitored closely.
There are some negative signals to consider as well. A sell signal was triggered by a pivot top on Thursday, October 3, 2024, and the stock has since fallen by 3.77%. Further declines are expected until a new bottom pivot is identified.
Petro Matad Limited finds support at 2.50p, with accumulated volume suggesting potential buying interest. A price reversal may occur if this support level remains intact.
The stock experiences moderate daily price movements with solid trading volume, indicating a medium-risk profile. On the last trading day, the stock moved 0.20p (8.51%) between its high and low. The average daily volatility over the past week was 7.80%.
Stop-Loss Considerations:
A stop-loss can be considered around 2.45p, which represents a 3.92% downside from the current price. This level aligns with the stock’s typical fluctuations and recent technical signals.
Stock Price Predictions for Wednesday: Petro Matad Limited is expected to open at 2.48p, with a trading range between 2.35p and 2.75p, based on the 14-day Average True Range (ATR). This suggests a potential price movement of +/- 0.20p (+/-7.84%) from the previous closing price. If the stock reaches the full swing range, the daily price range could expand by 15.68% from the low to the high.
The stock is currently closer to its support level at 2.50p (1.96%) than to its resistance at 2.63p (2.94%). This positioning suggests that the risk/reward ratio may be favorable for short-term trades before reaching the first resistance level.
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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
