$Kala Pharmaceuticals Inc.(KALA)$
The Kala Pharmaceuticals Inc stock price gained 99.04% on the last trading day (Thursday, 29th Dec 2022), rising from $12.48 to $24.84. It has now gained 5 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 125.85% from a day low at $13.50 to a day high of $30.49. The price has fallen in 6 of the last 10 days but is still up by 450.78% over the past 2 weeks. Volume fell on the last day by -22 million shares and in total, 28 million shares were bought and sold for approximately $704.71 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
Here's how to buy KALA stock if you're new to investing.
The stock has broken the very wide and strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $12.92, a level that may pose a second chance to hit a runner.
KALA Signals & Forecast
The Kala Pharmaceuticals Inc stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $8.07 and $6.00. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, December 22, 2022, and so far it has risen 576.84%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Kala Pharmaceuticals Inc stock
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.
$24.84
This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $16.99 between high and low, or 125.85%. For the last week, the stock has had daily average volatility of 68.32%.
The Kala Pharmaceuticals Inc stock is extremely overbought on RSI14 (94). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stop-loss: $24.19 (-2.62%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 94 and this increases the risk substantially. There is a buy signal from a pivot bottom found 4 days ago.)
Trading Expectations (KALA) For The Upcoming Trading Day Of Friday 30th
For the upcoming trading day on Friday, 30th we expect Kala Pharmaceuticals Inc to open at $22.94, and during the day (based on 14 day Average True Range), to move between $22.34 and $37.34 which gives a possible trading interval of +/-$12.50 up or down from last closing price. If Kala Pharmaceuticals Inc takes out the full calculated possible swing range there will be an estimated 49.11% move between the lowest and the highest trading price during the day.
Insiders are neutral as most recent trades are sells in Kala Pharmaceuticals Inc
In the last 100 trades there were 9.78 million shares bought and 5.65 million shares sold. The last trade was made 60 days ago by Farid Marjan who bough 1.6 thousand shares. For the period there has been more stocks bought than sold among the insiders, but most of the latest transaction have been insiders selling. There can be a variety of reasons for this, but the stock should be watched more closely.
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