Forestar Group Inc. (FOR) Technical Analysis and Chart Patterns

Forestar Group Inc. (NYSE:FOR) gained 0.31% in yesterday’s session, going up from its prior closing price of $16.35 to $16.40. The price has fallen in 5 of the last 10 days and is down by -5.2% over the same course of time. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 6.03 million more shares exchanged hands compared with prior day. In total, 6.64 M shares exchanged hands for about $108.89 million.

Inside FOR’s Recent Trend

Forestar Group Inc. (FOR) is the lower part of a horizontal trend on short term, and normally this would pose a good buying opportunity, though a break down through the bottom trend line at $16.35 will give a strong sales signal and a trend shift may be expected. Given the current horizontal trend you can expect Forestar Group Inc with 90% probability for the price to range between $16.13 and $17.06 in this timeframe. Investors sometime notices large volume spikes after a breaking of the horizontal base, and stocks rarely experience a roller coaster ride from the bottom of a trend. Stocks jumping at a middle end of a horizontal base are therefore followed in search of a potential runner.

Forestar Group Inc. Technical Signals

FOR has witnessed its long term and short term MA triggering a sell signal. Many traders watch for long-term averages to cross above short-term averages to signal the beginning of a downtrend. Upon corrections, the price will meet resistance from the averages between $16.76 and $17.11. A buy signal will be generated if it crosses above any of these levels.

Forestar Group Inc. (NYSE:FOR) Support And Resistance Levels

Forestar Group Inc. (FOR) recorded volume accumulation so there will probably be a surplus of buyers at $16.35. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $17.10, $17.20 and $17.30.

Accumulated volume is going to prevent the price from rising further at $17.10 and this action will lead the price to take a temporary pause or stay muted for a few days.

Forestar Group Inc. (FOR) 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 $1.15 (7.49%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 3.90%.

Forestar Group Inc is in oversold territory based on Relative Strength Index reading (26). In some cases it takes more time for the trend to shift while the stock is being oversold and the Relative Strength Index keeps moving.

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