Is CVR Refining, LP (CVRR) Worth Significant Investment?

CVR Refining, LP (NYSE:CVRR) gained 5.03% in yesterday’s session, going up from its prior closing price of $7.95 to $8.35 The stock price went upward in 7 of the last 10 days and has generated 22.79% 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 516 186 more shares exchanged hands compared with prior day. In total, 935 913 shares was the trading volume and the dollar amount of trading equals $7.81 million.

Inside CVRR’s Recent Trend

CVR Refining, LP (CVRR) lies the upper part of a very wide and falling 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 down through the support point at $8.36 will initially suggest a lower tendency for declines in the price and this might very well be an early sign that a trend shift is coming. Short-term traders are anticipated to see a retreat of -26.00% over the course of a quarter and, with 90% chance the price will be floating in the range of $4.55 and $6.19 in this timeframe.

CVR Refining, LP Technical Signals

CVRR has witnessed its long term and short term MA triggering a buy signal but chances are low for long-term averages to cross above short-term averages which the market considers a major buy signal. Upon corrections, the price will meet support from the averages between $7.73 and $7.94. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Tuesday August 29, 2017, which calls for additional surge until the stock forms a new pivot point high. 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.

CVR Refining, LP (NYSE:CVRR) Support And Resistance Levels

CVR Refining, LP (CVRR) recorded volume accumulation so there will probably be a surplus of buyers at $7.95. In case of gains, the next resistance from accumulated volume will be at $9.05, $9.85 and $10.00.

CVR Refining, LP (CVRR) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.75 between high and low, or 9.43%. The average volatility for the past week stood at 6.18%.

The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this will advocate a great exit point for short term investors, but in some cases it takes more time for the trend to shift while the stock is being overbought and the Relative Strength Index keeps going higher. Regardless, the high RSI together with the trendposition increases the risk and higher daily movements (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.


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