Could CARBO Ceramics Inc. (NYSE:CRR) change direction?

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Shares of CARBO Ceramics Inc. (NYSE:CRR) are currently poised at -21.89% from the open today and are trading at $6.71. More than 4,997,300 shares have exchanged hands compared to an average trading volume of 849.65K. At the current pps, the market cap stands at $183.85M. The stock prices of CARBO Ceramics Inc. (NYSE:CRR) are currently trading at -59.82% below its 52 week high and 18.55% above its 52 week low.

CARBO Ceramics Inc. (NYSE:CRR) has been in the news for all the right reasons. Recently, CARBO Ceramics Inc. (NYSE:CRR) announced today reported revenues of $34.7 million and a GAAP pre-tax loss of $32.2 million for the quarter ended March 31, 2017 compared to a GAAP pre-tax loss of $36.8 million in the same period of 2016. The GAAP pre-tax loss includes $12.1 million of costs primarily associated with slowing and idling production, two thirds of which is non-cash.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 88% Sell with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators mostly agree with the trend. The market is approaching oversold territory. Be watchful of a trend reversal.

CARBO Ceramics Inc. (NYSE:CRR) is all set to announce its earnings on Apr 27/b. As per Zack’s analyst ratings, CARBO Ceramics Inc. (NYSE:CRR) currently has an average brokerage rating of 2.81. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NYSE:CRR) is $13.583 with a high of $19 and a low of $7.5.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 8.38 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 11.13 is also higher than the current trading price depicting a bearish trend overall.

As such, while we believe CARBO Ceramics Inc. (NYSE:CRR) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 17.91 suggesting a bearish price action.

CARBO Ceramics Inc. is the world’s largest producer and supplier of ceramicproppants for use in the hydraulic fracturing of natural gas and oil wells.Demand for ceramic proppants depends primarily upon the demand for natural gas and oil and on the number of natural gas and oil wells drilled, completed or recompleted worldwide. More specifically, the demand for ceramic proppants is dependent on the number of oil and gas wells that are hydraulically fractured to stimulate production.

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