Markets

USA Technologies, Inc. (NASDAQ:USAT) Stock Nears $5.25: Still a Buy?

USA Technologies, Inc. (NASDAQ:USAT) shares surged 9.38% during trading on Thursday, going up from its prior closing price of $4.80 to $5.25. The stock price went upward in 5 of the last 10 days and has generated 2.94% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 3.83 million more shares exchanged hands compared with prior day. In total, 4.32 M shares exchanged hands for about $22.68 million.

Inside USAT’s Recent Trend

USA Technologies, Inc. (USAT) lies in the middle of a wide and weak rising trend in the short term and issued considerable signs about additional rally. Short-term traders are predicted to see a rally of 9.5% over the course of a quarter and, with 90% chance the price will be floating in the range of $5.14 and $6.27 in this timeframe.

USA Technologies, Inc. Technical Signals



USAT has witnessed its long term and short term MA triggering a buy signal but chances are low for long-term averages to cross above short-term averages which the market considers a major buy signal. Upon corrections, the price will meet support from the averages between $5.01 and $5.18. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Wednesday July 19, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.

USA Technologies, Inc. (NASDAQ:USAT) Support And Resistance Levels

In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $4.90 and $4.85. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $5.45, $5.35 and $5.30.




It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, USA Technologies approaches the first support point just current price at $4.90. In case of a break, the next support we will see from accumulated volume is going to be at $4.85 and $4.80. Accumulated volume is going to prevent the price from rising further at $5.45 and this action will lead the price to take a temporary pause or stay muted for a few days.

USA Technologies, Inc. (USAT) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.50 between high and low, or 10.10%. The average volatility for the past week stood at 6.86%.

 

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