Genesis Healthcare, Inc. (NYSE:GEN) fell by -11.63% in trading on Monday from $1.29 to $1.14 and has now fallen 4 consecutive sessions. The price has fallen in 5 of the last 10 days and is down by -20.83% over the same course of time. Volume has increased in trading on Monday by 89 980 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, 828 120 shares was the trading volume and the dollar amount of trading equals $944 057.
Inside GEN’s Recent Trend
Genesis Healthcare, Inc. (GEN) lies in the lower of a very wide and falling trend in the short term, and this will normally pose a very good buying opportunity. A break down through the resistance trend line at $1.05 will initially point to a quick declining speed. Short-term traders are anticipated to see a retreat of -31.63% over the course of a quarter and, with 90% chance the price will be floating in the range of $0.72 and $1.07 in this timeframe.
Genesis Healthcare, Inc. Technical Signals
GEN 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 $1.37 and $1.53. A buy signal will be generated if it crosses above any of these levels. Its pivot point high generated sell signal on Wednesday August 09, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. Genesis Healthcare Inc gained volume on the last day, but on a weak note. In technical terms this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical sell-off’s.
Genesis Healthcare, Inc. (NYSE:GEN) 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 $1.29, $1.37 and $1.41.
Genesis Healthcare, Inc. (GEN) Risk Assessment
The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.20 (18.18%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 10.55%.
Genesis Healthcare Inc is overbought on RSI14 (14). Some stocks may go long and hard while being overbought on RSI, but overbought increases the general risk as higher volatility could be expected, and at some level the stock will have a reaction back to gain new strength.