Last week, an AI trading robot managed to secure a 4.64% profit for EVGO, an electric vehicle infrastructure company, a remarkable outcome given the bearish signals that have been emerging in the market. The implementation of AI-powered trading systems has consistently demonstrated their strength and adaptability in navigating complex, and often unpredictable, financial landscapes.
On May 12, 2023, EVGO's Moving Average Convergence Divergence Histogram (MACD) turned negative. This is generally interpreted as a bearish signal, suggesting potential future depreciation in the stock’s value. MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. The MACD triggers technical signals when it crosses above (to buy) or below (to sell) its signal line.
Tickeron's A.I.dvisor studied 19 instances where EVGO’s MACD indicator turned negative. The results were quite striking; in all 19 cases, the stock price decreased in the days that followed. Based on this pattern, the A.I.dvisor deduced a 90% probability of a downward trend for EVGO.
Despite these overwhelmingly bearish signals, the AI trading robot deployed for EVGO managed to generate a profit of 4.64% last week. This serves as a testament to the power and potential of AI in financial markets, where rapid data processing, unemotional decision-making, and predictive analytics can often outperform traditional human analysis.
The AI trading robot's ability to generate profit amid bearish predictions underscores the tool's advanced capabilities in extracting value from volatile market conditions. It is likely that the AI trading robot implemented a sophisticated trading strategy, such as short selling or options trading, to take advantage of the anticipated price decline.
The impressive performance of this AI trading robot offers a glimpse into the future of financial trading. While traditional technical analysis is an essential part of understanding market trends, AI-powered trading systems may provide a valuable edge, capable of analyzing vast amounts of data in real-time and executing trades in a fraction of a second.
This event serves as a timely reminder for investors to consider the potential of AI in their trading strategies. As technology continues to evolve and improve, AI trading robots could become increasingly integral to successful trading outcomes, even in the face of challenging market conditions.
The case of EVGO serves as an intriguing study of the potential of AI in stock trading. Despite bearish indicators suggesting a high probability of a price decline, the AI trading robot managed to deliver a healthy profit. Investors and traders should take note of the significant role that AI can play in navigating complex market dynamics and potentially delivering solid returns.
EVGO saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 12, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 19 instances where the indicator turned negative. In of the 19 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 17, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on EVGO as a result. In of 41 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
EVGO moved below its 50-day moving average on May 09, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for EVGO crossed bearishly below the 50-day moving average on April 26, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 6 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EVGO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for EVGO entered a downward trend on May 12, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EVGO advanced for three days, in of 116 cases, the price rose further within the following month. The odds of a continued upward trend are .
EVGO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (90.090) is normal, around the industry mean (14.867). P/E Ratio (0.000) is within average values for comparable stocks, (24.845). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.445). EVGO has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.037). P/S Ratio (3.839) is also within normal values, averaging (68.736).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. EVGO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. EVGO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
|MFs / NAME||Price $||Chg $||Chg %|
|DWS RREEF Global Real Estate Secc S|
|JPMorgan Diversified I|
|Morgan Stanley Instl Global Core A|
|American Funds International Vntg 529F-1|
|TIAA-CREF International Eq Instl|
A.I.dvisor indicates that over the last year, EVGO has been loosely correlated with CHPT. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if EVGO jumps, then CHPT could also see price increases.
|CHPT - EVGO|
|HNST - EVGO|
|FND - EVGO|
|ACVA - EVGO|
|KAR - EVGO|