Markets

Is Cornerstone OnDemand, Inc. (CSOD) Investing Its Way Into A Muddle?

Cornerstone OnDemand, Inc. (NASDAQ:CSOD) gained 14.95% in yesterday’s session, going up from its prior closing price of $34.85 to $40.06 The stock price went upward in 6 of the last 10 days and has generated 14.56% 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 3.63 million more shares exchanged hands compared with prior day. In total, 3.92 M shares exchanged hands for about $156.98 million.

Inside CSOD’s Recent Trend

Cornerstone OnDemand, Inc. (CSOD) lies the upper part of a very wide and falling trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break down through the support point at $40.12 will initially suggest a lower tendency for declines in the price and this might very well be an early sign that a trend shift is coming. Short-term traders are anticipated to see a retreat of -4.36% over the course of a quarter and, with 90% chance the price will be floating in the range of $30.27 and $38.37 in this timeframe.

Cornerstone OnDemand, Inc. Technical Signals



CSOD 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 $35.56 and $35.81. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Friday September 08, 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.

Cornerstone OnDemand, Inc. (NASDAQ:CSOD) 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 $35.32 and $35.31. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $40.25, $40.73 and $40.76.




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, Cornerstone OnDemand approaches the first support point just current price at $35.32. In case of a break, the next support we will see from accumulated volume is going to be at $35.31 and $34.96. Accumulated volume is going to prevent the price from rising further at $40.25 and this action will lead the price to take a temporary pause or stay muted for a few days.

Cornerstone OnDemand, Inc. (CSOD) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $5.51 (15.95%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 4.61%.

The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this will advocate a great exit point for short term investors, but in some cases it takes more time for the trend to shift while the stock is being overbought and the Relative Strength Index keeps going higher. Regardless, the high RSI together with the trendposition increases the risk and higher daily movements (volatility) should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.

 

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