Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Thermo Fisher Scientific Inc. (TMO) stock price crashed more than 10% in the last three weeks. The price suffered resistance and heavy short-selling from the upper supply level of $565; dragging the price down to a low of $500.
Thermo Fisher Scientific has recently delivered dividends of $0.35 to the stockholders on 14 September 2023. The Thermo Fisher company holds strong fundamentals and has a market cap of $194.05 Billion. The share price is a bit expensive as per the price-to-earnings ratio. The company has a price-to-earnings ratio of 34.30 against a basic EPS of 14.71.
The daily TMO price chart illustrates that the price has been volatile over the charts with major ups and downs. The price seems to be respecting the upper trendline as a resistance as it suffered multiple rejections from there and declined.
Analysts offering a 1-year price forecast for Thermo Fisher Scientific Inc. have a maximum estimate of $693 with an upside potential of more than 37% and a minimum estimate of $520. Thermo Fisher Scientific Inc. company engages in the provision of analytical instruments, software, reagents and consumables, services for research, etc.
Source: barchart.com
TMO stock option-chain analysis states that the current implied volatility in the market is 24.61% with an increment of 1.39% in the last trading session. The at-the-money strike has an OI of 102 on the PUT side and 8 on the CALL side indicating the buyers’ dominance at CMP.
TMO Stock Price Consolidates Near Swing Low
Source: Thermo Fisher Scientific Inc 1D. NYSE By TradingView
The TMO stock price currently trades at $502.79 and shows a two-week consolidation near the recent swing and round level of $500. The bulls are attempting to recover but are not getting enough buying volume to counter the declining trend.
The breakdown of the $500 level may trigger a decline toward the lower support levels. The price trend favors the bears and they might try to dominate the trend unless enough buying volume counters them.
Technical Indicators Show Weakness Over the Chart
The daily TMO stock price chart shows that the price is trading below the key moving average of 50 and 200-day EMA. The daily chart shows frequent crossover of the price and respective EMAs of 50-day and 200-day EMA indicating a sideways to bearish trend.
The overall technical opinion rating including RSI and MACD signals an 88% “sell” with a strong short-term outlook on maintaining the current direction.
Conclusion
Thermo Fisher Scientific Inc. (TMO) is a company that provides analytical instruments, software, and services for research. The TMO stock price dropped more than 10% in three weeks, facing resistance from the upper trendline and short-selling pressure. The price is now trading near $500, a round level and a swing low. The price may break down below this level and continue the downtrend, or recover with enough buying volume. Analysts have a maximum estimate of $693 and a minimum estimate of $520 for the TMO stock price in a year.
Technical Levels
- Support levels: $498.15 and $475.81
- Resistance levels: $526 and $565.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/23/tmo-stock-price-might-slump-below-500-level-says-analysts/