Morphic Holding (MORF, $55.3) RSI Indicator Suggests Potential Price Correction Ahead
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Morphic Holding Inc. (MORF) is a clinical-stage biopharmaceutical company that focuses on discovering and developing oral integrin therapies. The company has recently been in the news due to the RSI indicator leaving the overbought zone on May 16, 2023, which could be signaling a potential price correction. In this blog post, we'll explore what this means for traders and investors and what they can do to mitigate their risks.
What is RSI Indicator?
The Relative Strength Index (RSI) is a technical indicator used to measure the strength and momentum of a stock's price action. The RSI oscillates between 0 and 100 and is calculated based on the average gains and losses of a stock over a specified period. A reading above 70 is considered overbought, while a reading below 30 is considered oversold.
What Does the RSI Indicator Mean for Morphic Holding (MORF)?
MORF's RSI indicator leaving the overbought zone on May 16, 2023, is a signal that the stock's price could be shifting from an uptrend to a downtrend. This could be a cause for concern for traders and investors who hold the stock. When a stock is overbought, it means that the buying pressure has pushed the stock's price to an unsustainable level, and a correction is likely to occur.
What Can Traders and Investors Do?
Traders and investors may consider selling the stock or exploring put options as a way to mitigate their risks. Selling the stock will allow them to lock in their profits and minimize their losses in case the stock continues to decline. On the other hand, exploring put options will give them the right to sell the stock at a predetermined price, protecting them from any further downside risk.
Historical Data and A.I.-Generated Predictions
A.I.dvisor looked back and found 28 similar cases where MORF's RSI Indicator left the overbought zone, and in 26 of them led to a successful outcome. This means that there is a 90% chance that the stock's price could correct in the near future. However, traders and investors should keep in mind that past performance is not a guarantee of future results.
MORF's RSI indicator leaving the overbought zone could be signaling a potential price correction, and traders and investors should be cautious. Selling the stock or exploring put options could be ways to mitigate their risks. However, they should also consider their individual risk tolerance and investment goals before making any decisions.
MORF in +4.21% Uptrend, rising for three consecutive days on June 06, 2023
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where MORF advanced for three days, in of 241 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 31, 2023. You may want to consider a long position or call options on MORF as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 175 cases where MORF Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for MORF moved out of overbought territory on May 25, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 47 cases where MORF's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MORF turned negative on May 19, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 38 similar instances when the indicator turned negative. In of the 38 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MORF declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MORF broke above its upper Bollinger Band on May 09, 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.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MORF’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 fair valued 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 (6.188) 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 (32.468) 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. MORF’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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a biopharmaceutical company, which engages in the research and development of oral small-molecule integrin therapeutics.
Industry Biotechnology
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MORF and
Correlation & Price change
A.I.dvisor indicates that over the last year, MORF has been loosely correlated with EDIT. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if MORF jumps, then EDIT could also see price increases.
| Ticker / NAME | Correlation To MORF | 1D Price Change % | ||
|---|---|---|---|---|
| MORF | 100% | +3.21% | ||
| EDIT - MORF | 62% Loosely correlated | +8.58% | ||
| AGIO - MORF | 60% Loosely correlated | +2.92% | ||
| RCKT - MORF | 60% Loosely correlated | +3.07% | ||
| BEAM - MORF | 59% Loosely correlated | +1.15% | ||
| RVMD - MORF | 59% Loosely correlated | +4.57% | ||
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