POET Technologies (POET, $4.5) has been on an upward trend for a while now, but recent indicators suggest that the trend may be coming to an end. In this blog post, we'll take a look at what the indicators are saying and what traders should consider.
POET's RSI Indicator: The End of an Uptrend?
POET's RSI Indicator has left the overbought zone, signaling a potential shift from an uptrend to a downtrend. A.I.dvisor's analysis of 31 similar cases where POET's RSI Indicator left the overbought zone showed a successful outcome in 29 cases, giving the current scenario a 90% chance of success. Traders may want to consider selling the stock or exploring put options.
POET's Moving Average: A Sign of Continued Growth?
On April 28, 2023, POET moved above its 50-day moving average, indicating a change from a downward trend to an upward trend. In 47 of 50 similar past instances, the stock price increased further within the following month, giving the current scenario a 90% chance of continued upward growth. However, traders should still keep an eye on other indicators, such as the RSI Indicator, to see if there are any conflicting signals.
POET and CEVA: Low Probability of Moving in Lockstep
A.I.dvisor's analysis of POET's correlation with CEVA showed a low correlation of only 28% for the last year. This suggests that there is a low statistical probability that POET and CEVA's prices will move in lockstep. Traders should consider this when making decisions about investing in either stock.
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The 10-day RSI Indicator for POET moved out of overbought territory on May 18, 2023. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 instances where the indicator moved out of the overbought zone. In of the 30 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
The Momentum Indicator moved below the 0 level on May 24, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on POET as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for POET turned negative on May 24, 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 49 similar instances when the indicator turned negative. In of the 49 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 POET declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
POET broke above its upper Bollinger Band on April 28, 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 Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
POET moved above its 50-day moving average on April 28, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for POET crossed bullishly above the 50-day moving average on May 08, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where POET advanced for three days, in of 256 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 138 cases where POET Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. POET’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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. POET’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 63, placing this stock worse than average.
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 (12.210) is normal, around the industry mean (6.997). P/E Ratio (0.000) is within average values for comparable stocks, (54.530). POET's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.588). Dividend Yield (0.000) settles around the average of (0.024) among similar stocks. POET's P/S Ratio (212.766) is very high in comparison to the industry average of (11.530).
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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows