ALX Oncology Holdings (ALXO, $6) emerged as one of the top gainers in the biotechnology sector this month, registering a remarkable 25% increase to reach $6 per share. A.I.dvisor's analysis of 965 stocks within the industry revealed that 75.24% displayed an upward trend, while 24.76% showcased a downward trend at the end of April 21, 2023. In this article, we will take a closer look at ALXO's performance, delve into its earnings results, and discuss potential investment strategies.
Bollinger Bands and Market Indicators
On April 21, 2023, ALXO broke above its upper Bollinger Band, an event typically associated with a future drop in stock prices. Bollinger Bands are a popular technical analysis tool that helps investors identify potential overbought or oversold conditions in the market. When a stock price rises above its upper band, it may signal that the stock is overbought, and investors should exercise caution.
A.I.dvisor examined 18 similar occurrences where ALXO's stock broke above its upper Bollinger Band. In 16 out of those 18 cases, the stock price experienced a subsequent decline. This historical data suggests an 89% probability of success in predicting a future drop in ALXO's stock price.
Investment Strategies and Considerations
Given the potential for a price drop following ALXO's break above its upper Bollinger Band, investors may want to consider selling the stock or exploring put options to hedge their position. Put options provide investors with the right to sell a stock at a predetermined price, offering downside protection in case the stock's price declines.
However, it is crucial to remember that past performance does not guarantee future results. Investors should conduct their own research and analysis of ALXO's financial health, growth potential, and market conditions before making any investment decisions.
ALX Oncology Holdings (ALXO) experienced a significant gain of 25% this month, positioning it as a top performer within the biotechnology industry. The stock's break above its upper Bollinger Band on April 21, 2023, might indicate a forthcoming price drop, as supported by an 89% success rate in similar past occurrences. Investors are advised to evaluate their investment strategies, considering factors such as ALXO's financial performance and market conditions, before making any decisions.
The 10-day moving average for ALXO crossed bullishly above the 50-day moving average on May 01, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 6 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 19, 2023. You may want to consider a long position or call options on ALXO as a result. In of 47 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ALXO just turned positive on June 01, 2023. Looking at past instances where ALXO's MACD turned positive, the stock continued to rise in of 30 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where ALXO advanced for three days, in of 178 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 101 cases where ALXO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ALXO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ALXO broke above its upper Bollinger Band on June 01, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ALXO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 (1.433) is normal, around the industry mean (25.115). P/E Ratio (0.000) is within average values for comparable stocks, (123.628). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.372). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (0.000) is also within normal values, averaging (308.870).
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. ALXO’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 94, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a clinical stage company, which engages in the research and development of therapies for cancer patients
A.I.dvisor indicates that over the last year, ALXO has been loosely correlated with MDGL. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if ALXO jumps, then MDGL could also see price increases.
|MDGL - ALXO|
|EDIT - ALXO|
|NKTX - ALXO|
|DNLI - ALXO|
|BEAM - ALXO|