Demandware Inc. Stock Analysis 04/16/2014 Last price: 51.80$
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Let´s see the technicals:
S1: 46.17 S2: 36.97$ R1: 56.84 R2: 67.91
THe macd is below zero and close to the signal. the stock has a large long downtrend since the Macd crossed the signal on March the 10th.
The momentum is below zero and it looks to me that it´s probably that will go lower.
The RSI is at 32% in a flat pattern.
The stochastic is at 20% stuck in the oversold levels.
Elliot waves: The curve is finishing the flat pattern inside a downtrend secuence. So it´s probably the stock will go up a little in the next session.
During the last 3 sessions I can identify a doji then a bearish engulfing pattern and yesterday the curve drew a hammer.
The company has a good sales growth in the past 4 years. However the EPS is negative in the last 5 years! (in 2013 the EPS decreased a -76.03%).
Buy interval: It´s dificult to determine the purchase range of this stock. It´s probably the stock will go up a little( Elliot waves) however in my opinion if the stock will not break the 56.84 resistance in the nexts sessions it´s probably that the stock will test the 46.17$ resistance. Our buy interval could be [47.12;47.26] but you better beware, the stock could break the support. Pay attention in the volume!
I leave you the Chart: