Yirendai Ltd. (NYSE:YRD) gained 5.09% in Monday’s trading session, going up from its prior closing price of $33.18 to $34.87 The stock price went upward in 6 of the last 10 days and has generated 32.99% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 476 418 more shares exchanged hands compared with prior day. In total, 896 951 shares was the trading volume and the dollar amount of trading equals $31.28 million.
Inside YRD’s Recent Trend
Yirendai Ltd. (YRD) lies in the upper part of a wide and strong rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $35.33 will firstly indicate a stronger raising rate. Short-term traders are predicted to see a rally of 25.08% over the course of a quarter and, with 90% chance the price will be floating in the range of $35.36 and $44.19 in this timeframe.
Yirendai Ltd. Technical Signals
YRD has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $33.48 and $26.85. A break down through these support points will trigger sell signals. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. Its pivot point high generated sell signal on Tuesday July 18, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity.
Yirendai Ltd. (NYSE:YRD) Support And Resistance Levels
Yirendai Ltd. (YRD) recorded volume accumulation so there will probably be a surplus of buyers at $34.76, $33.79, and $28.72. It seems to be blessed by the accumulated volume as it meets no resistance above current level and favorable trading conditions will help the stock to show strong performance in the coming days.
Yirendai Ltd. (YRD) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $3.25 between high and low, or 10.00%. The average volatility for the past week stood at 8.63%.
The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this offers great exit point for the short term traders. The RSI above 70 combined with the trend position poses greater risk so increased volatility should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.