Technical Analysis on Two US-Listed Stocks – FHB, DAN

May 11, 2023 | Team Kalkine
Technical Analysis on Two US-Listed Stocks – FHB, DAN

Company Overview: First Hawaiian Inc. (NASDAQ: FHB) operates as a bank holding company for First Hawaiian Bank, which offers a variety of consumer and commercial banking products and services in the United States. Dana Incorporated (NYSE: DAN) provides power-transmission and energy-management solutions for vehicles and apparatus, thereby enhancing the efficacy, performance, and sustainability of light vehicles, commercial vehicles, and off-highway equipment. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these two stocks.

First Hawaiian Inc.

Technical Analysis:

FHB’s prices are trading with lower lows and lower highs formation and trading around the 52-week low, indicating an overall downtrend for the stock. The prices are also facing resistance from a downward sloping trendline, supporting the negative bias. The leading indicator RSI (14-period) is moving in the oversold zone with a reading of 25.47. The trend following indicators 21-period and 50-period SMAs are above the current market price and may function as the dynamic resistance levels for the stock.

Daily Technical Chart – FHB

Considering the stock's current price levels confronting the short-term downward trendline and technical indicators analysis, a 'Watch' recommendation is given on the stock. The stock was analysed as per the closing price of USD 16.31 per share as on 11 May 2023.

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

Dana Incorporated

Technical Analysis:

DAN's prices have formed a trading range characterised by lower highs and higher lows, indicating that this sideways trend may continue in the near future. Besides, although confronting a short-term trendline with a downward inclination, the stock is currently forming a bottom divergence relative to the RSI (14-period), which trades near the midpoint. The stock is trading below its 21-period and 50-period SMAs, which may act as a resistance level; in contrast, the stock's most recent low may act as a support level. 

Daily Technical Chart – DAN

Considering the stock's current price levels confronting the short-term downward trendline and technical indicators analysis, a 'Watch' recommendation is given on the stock. The stock was analysed as per the closing price of USD 13.78 per share as on 11 May 2023. Dana Incorporated (NYSE: DAN) was last covered in a report dated '21 January 2022'.

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 geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.

Note 3: Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are 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.

The reference date for all price data, currency, technical indicators, support, and resistance levels is May 09, 2023. The reference data in this report has been partly sourced from REFINITIV.

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.

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).

The Orange/ Yellow colour line represents the Trendline.

The Purple 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.


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