Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) fell by -3.83% in trading on Monday from $31.35 to $30.15. The price has fallen in 6 of the last 10 days and is down by -16.37% over the same course of time. Volume has increased in trading on Monday by 1.36 million shares, but on a weak note. This is may be an early warning and the risk will be increased slightly for the next couple of days. In total, 2.41 M shares exchanged hands for about $72.66 million.
Inside SBGI’s Recent Trend
Sinclair Broadcast Group, Inc. (SBGI) has broken the wide and horizontal trend down. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately $31.73 is considered to be a second chance to get out before further fall. It is, however, important to note that false breaks may appear and that the price may move back into the horizontal trend. A break on increasing volume is considered to be more significant and reliable than breaks on low volume.
Sinclair Broadcast Group, Inc. Technical Signals
SBGI has witnessed its long term and short term MA triggering a sell signal. Many traders watch for long-term averages to cross above short-term averages to signal the beginning of a downtrend. Upon corrections, the price will meet resistance from the averages between $31.14 and $33.43. A buy signal will be generated if it crosses above any of these levels. Its pivot point high generated sell signal on Tuesday August 01, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. Volume up and price depreciating is getting our attention as this movement is seen as bearish sign.
Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Support And Resistance Levels
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. In case of gains, the next resistance from accumulated volume will be at $31.90, $33.60 and $36.15.
Sinclair Broadcast Group, Inc. (SBGI) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $2.45 between high and low, or 8.15%. The average volatility for the past week stood at 3.72%.
Sinclair Broadcast Group is in oversold territory based on Relative Strength Index reading (28). In some cases it takes more time for the trend to shift while the stock is being oversold and the Relative Strength Index keeps moving.