$Mereo Biopharma Group Plc(MREO)$
Mereo (MREO) Stock Forecast
The Mereo Biopharma Group Plc stock price gained 5.94% on the last trading day (Friday, 9th Sep 2022), rising from $1.01 to $1.07. It has now gained 4 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 5.83% from a day low at $1.03 to a day high of $1.09. The price has fallen in 5 of the last 10 days and is down by -22.46% for this period. Volume fell on the last day by -140 thousand shares and in total, 421 thousand shares were bought and sold for approximately $450.65 thousand. 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.
The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -4.39% during the next 3 months and, with a 90% probability hold a price between $0.50 and $1.61 at the end of this 3-month period.
Signals & Forecast
There are few to no technical positive signals at the moment. The Mereo Biopharma Group Plc stock holds a buy signal from the short-term moving average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term moving average at $1.22. On a fall, the stock will find some support from the short-term average at $1.06. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. A sell signal was issued from a pivot top point on Friday, July 15, 2022, and so far it has fallen -38.15%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not.
Support, Risk & Stop-loss
On the downside, the stock finds support just below today's level from accumulated volume at $1.01 and $0.98. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Mereo Biopharma Group Plc finds support just below today's level at $1.01. If this is broken, then the next support from accumulated volume will be at $0.98 and $0.98.
$1.01 $1.07 $1.18
This stock may move much during the day (volatility) and with periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved $0.0600 between high and low, or 5.83%. For the last week the stock has had daily average volatility of 11.77%.
Cantor Fitzgerald is very positive about MREO and gave it a "" rating on Aug 12, 2022. The price target was set to $4, as Astra Zeneca (AZ) may make an offer of acquisition soon.
Over the last 90 days, this security got 1 buy, 0 sell, and 0 hold ratings
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