Shares of CNH Industrial N.V. (NYSE: CNH), a global leader in the capital goods sector, are experiencing a highly volatile trading session this morning. The stock saw a dramatic price swing immediately following the opening bell, leaving it nearly unchanged from its previous close despite the significant intraday movement.
As of 10:48 AM EDT, CNH stock was trading at 0.01 (-0.12%). However, this near-flat performance masks the session’s turbulence. After closing yesterday at $13.03, the stock opened at 12.83**. It then staged a powerful recovery on a surge of high volume, rocketing to a day’s high of $13.04 before settling into its current level.
The trading volume is already substantial, with over 6.3 million shares traded, indicating very active participation from both buyers and sellers in this volatile price action.
Should You Buy or Sell This Stock Today?
Given the extreme price swings, here is an analysis of the current situation for traders:
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The Bullish Case (Buy): The powerful and rapid recovery from the morning’s low is a significant bullish signal. It indicates that buyers were willing to step in aggressively to support the stock at lower levels. This “shakeout and recovery” pattern on high volume can sometimes precede a continued move higher. The stock is also trading considerably below its 1-year analyst target estimate of $15.04.
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The Bearish Case (Sell): The initial sharp drop at the market open points to significant selling pressure. The failure to hold the day’s high and the subsequent leveling-off suggest that the upward momentum has stalled. Such extreme volatility introduces a high degree of risk, and traders might prefer to sell into strength to avoid getting caught in another potential downturn.
Opinion
CNH Industrial stock is currently the scene of a fierce battle between buyers and sellers. The dramatic V-shaped recovery this morning is the key technical event. While the stock is currently trading flat, the underlying volatility suggests a high level of uncertainty.
The immediate future of the stock today will likely be determined by whether it can build upon the morning’s recovery and break through the day’s high, or if the initial selling pressure will re-emerge. This is a stock for experienced, risk-tolerant traders today, as further sharp price movements in either direction are possible.
