To The Moon

The Unity $Unity Software Inc.(U)$ stock price fell by -2.31% on Friday, 4th Aug 2023 from $41.12 to $40.17. It has now fallen 4 days in a row. During the last trading day the stock fluctuated 5.46% from a day low at $39.90 to a day high of $42.08. The price has fallen in 7 of the last 10 days and is down by -9.71% for this period. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -5 million shares and in total, 10 million shares were bought and sold for approximately $418.89 million.

Given the current short-term trend, the stock is expected to rise 61.53% during the next 3 months and, with a 90% probability hold a price between $64.89 and $84.58 at the end of this 3-month period.

U Signals & Forecast

There are few to no technical positive signals at the moment. The Unity stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $43.21 and $42.75. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Wednesday, July 19, 2023, and so far it has fallen -17.18%. 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 together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Support, Risk & Stop-loss for Unity stock

Unity finds support from accumulated volume at $38.58 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $2.18 between high and low, or 5.46%. For the last week, the stock has had daily average volatility of 5.51%.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (U) For The Trading Day Of Monday 7th

For the trading day on Monday, 7th we expect Unity Software Inc. to open at $40.72, and during the day (based on 14 day Average True Range), to move between $37.55 and $42.79, which gives a possible trading interval of +/-$2.62 (+/-6.52%) up or down from last closing price. If Unity Software Inc. takes out the full calculated possible swing range there will be an estimated 13.04% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $41.04 (2.17%) than the support at $38.58 (3.96%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Insiders are positive buying more shares than they are selling in Unity

In the last 100 trades there were 14.64 million shares bought and 4.29 million shares sold. The last trade was made 7 days ago by Helgason David who sold 12.4 thousand shares. The large amount of stocks bought compared to stocks sold indicate that the insiders believe there is a potential good upside. In some cases larger purchases can be explained by due date for stock options.

Is Unity Software Inc. stock A Buy?

The Unity stock holds several negative signals and despite the positive trend, we believe Unity will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock.