Collegium Pharmaceutical, Inc.

Collegium Pharmaceutical, Inc. (NASDAQ: COLL) is a pharmaceutical company, which engages in development and planning to commercialize next generation, abuse-deterrent products for the treatment of patients suffering from chronic pain and other diseases.

Technical Observation (on the daily chart): 

At present, the COLL stock has breached its trendline support levels, which might function as a temporary resistance zone in the near term. The stock may experience consolidation with a bearish inclination. For COLL to potentially shift towards a more bullish trend and rise, it is crucial for the stock to maintain a position above the trendline. The 14-day Relative Strength Index (RSI), a momentum-measuring indicator, is currently below the midpoint, suggesting a negative trend. Moreover, the 21-day and 50-day Simple Moving Averages (SMAs) are positioned above the stock's price, which could act as an immediate resistance barrier.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Collegium Pharmaceutical, Inc. at its close price of USD 35.40 as of April 16, 2024. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Caesarstone Ltd.

Caesarstone Ltd.  (NASDAQ: CSTE) operates as a multi material designer, producer and reseller of countertops used in residential and commercial buildings globally.

Technical Observation (on the daily chart): 

Following a substantial uptrend, the CSTE stock is confronting resistance at a horizontal trendline resistance zone, where selling pressure has historically intensified when the stock nears this crucial level. This situation may suggest an extended period of consolidation as the stock strives to overcome the resistance. For CSTE to potentially shift towards a more bullish trend and rise, it is vital for the stock to maintain a position above the trendline. The 14-day Relative Strength Index (RSI), a momentum-measuring indicator, is currently reversing from an overbought region, potentially indicating a pullback towards a downward direction. Furthermore, the 21-day and 50-day Simple Moving Averages (SMAs) are below the stock's price, which could function as an immediate support zone. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Caesarstone Ltd.  at its close price of USD 5.45 as of April 16, 2024. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

Past performance is neither an indicator nor a guarantee of future performance. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is April 16, 2024. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.