JustPlainHenry

Weekly Forecast 24th April

Long
NYSE:O   Realty Income Corporation
O is by far my favourite long term pick in the US market recently. Consistent momentum and a strong monthly dividend to support it. Although I am very bullish on the stock there is a bit of concern that I have in the short term (roughly 5-10 trading days or so).
Price movement has moved very fast recently and has moved away from the mean and have reached short term oversold regions on the daily and weekly graphs. It may be as a result of optimism for a reopening economy in the US, some investors might have moved away from growth stocks due to volatility , or is this a short term push as a result of the optimism on the solid economic data that was released earlier today?
Non the less these are my forecasts for this stock (this is my own personal opinion, I am not a legal financial advisor)
Optimistic case:
* IF the stock continues to run, then I will expect at most a move towards $71 a share
- the probability of that occurring on Monday however is 20%
* After that run, O will drop back to $65-$66, closer to the mean
* From that point, I would expect that the stock price will rally a small amount as a result of earnings that is fast approaching (7 days from when I am writing this)
* After that, I'll have to analyse the data I'm presented next week for a forecast of what will happen then.
Neutral case:
* Stock will immediately drop back to $65-66 level because, at the current price, it is overextended in the short term
* As I have stated earlier, that I expect optimism in this stock and expect that price would trend upwards on the earnings report
* After that, I'll have to analyse the data I'm presented next week for a forecast of what will happen then.

Happy investing y'all

Comments

Hi what’s your opinion on this movement now?
Reply
@nani_04, Hi, did you find this useful? I'll post another forecast towards the end of the week when I have a bit more time to analyze it.
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