According to the 15-minute chart of Homestreet, the KDJ Death Cross and Bearish Marubozu indicators triggered on August 25, 2022 at 13:00. This suggests that the momentum of the stock price is shifting towards the downside and has the potential to further decrease. Sellers are currently in control of the market, and this bearish momentum is likely to continue.
Homestreet Inc's (NASDAQ: HMST) stock price experienced a significant shift on August 25, 2022, at 13:00, as its 15-minute chart exhibited a KDJ Death Cross and a Bearish Marubozu. These technical indicators suggest a strong downward trend, with sellers currently dominating the market and bearish momentum likely to persist [1].
The KDJ (Keltner Channels) Death Cross occurs when the KDJ line crosses below the signal line, indicating a change in momentum from bullish to bearish. The appearance of a Bearish Marubozu candlestick pattern further supports this bearish sentiment. A Marubozu candlestick is characterized by a long body without any upper or lower wicks, suggesting strong buying or selling pressure with no reversal.
Despite the technical indicators, HomeStreet Inc has shown resilience with recent regulatory approvals and shareholder approvals. The company has also received positive analyst ratings and had its stock price target raised by Piper Sandler [2]. However, the current market conditions and technical indicators suggest a cautious approach for investors.
Investors should be mindful of the potential risks associated with margin pressure and cost management, as rising fulfillment and shipping costs could impact margins if scale benefits do not materialize as expected. The narrative projects $45.5 billion in revenue and $5.3 billion in earnings by 2028, requiring 23.6% yearly revenue growth and a $3.2 billion increase in earnings from $2.1 billion today [1].
Fair value estimates for HomeStreet Inc from the Simply Wall St Community span from $1,398 to $3,406 across 29 individual forecasts, highlighting diverse views on growth versus profitability. While the stock might be worth as much as 45% more than the current price, investors should consider the potential risks associated with margin pressure and cost management [1].
References:
[1] https://simplywall.st/stocks/us/retail/nasdaq-meli/mercadolibre/news/how-investors-are-reacting-to-mercadolibre-meli-balancing-ra
[2] https://www.investing.com/equities/homestreet-inc
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