One of the most famous sayings in the stock market is “buy low, sell high”. This may seem like an oversimplified statement, but there are many novice investors who often do the complete opposite. Many investors may be looking too closely at stocks that have been on the rise, and they might not be checking on the underlying fundamental data. They may be hoping to ride the wave higher, but may end up shaking their heads. On the flip side, many investors may hold onto stocks for far too long after they have slipped drastically. Waiting for a bounce that may never come can cause frustration and plenty of second guessing. Successful investors are typically able to locate stocks that are undervalued at a certain price. This may take a lot of practice and dedication, but it may do wonders for the health of the portfolio.
Technical traders have many tools at their disposal when conducting stock research. One of those tools is the Exponential Moving Average or EMA. The EMA is similar to the simple moving average, but more weight is put on the newest data. Let’s look at some different EMA levels on shares of Werner Enterprises, Inc. (NASDAQ:WERN):
10 day Exponential Moving Average: 31.072514
20 day Exponential Moving Average: 30.765274
30 day Exponential Moving Average: 30.730116
50 day Exponential Moving Average: 30.964796
100 day Exponential Moving Average: 31.803757
200 day Exponential Moving Average: 33.22688
Following trading action on shares of Werner Enterprises, Inc. (NASDAQ:WERN), we see that the stock has moved -0.18 since the opening price of 31.47. So far, the stock has reached a high of 31.62 and dipped to a low of 31.29. The consensus rating on the stock is currently Buy, and today’s volume has been measured around 163297.
Tracking some stock ratings, we can see that the stock’s Moving Average Rating is currently pointing to a “Buy”. Traders may be monitoring many different indicators in order to get a grasp of where the stock may be moving in the near future. Taking a look at the Oscillators rating, we note that the reading is pointing to a “Buy”.
Traders will take note of the 20 day Chaikin Money Flow indicator that is now at 0.21090026. The value of this indicator will fluctuate between 1 and -1. Traders may be watching when the CMF crosses zero. This cross might point to a bullish or bearish price reversal depending on which way it is moving crossing the zero line.
There are a number of different pivot points that traders can use when conducting stock analysis. Pivot points can be useful for traders looking to establish trading entry and exit points. Focusing on some popular one month pivots, we see that the Woodie pivot is currently at 29.8475. The Woodie support 1 pivot is 29.425, and the Woodie resistance 1 pivot is 30.675. The Camarilla one month pivot is presently 29.82. The one month Classic pivot is 29.82 and the Classic resistance 1 is 30.62 while the Classic support 1 pivot is measured at 29.37.
The Awesome Oscillator reading is currently 1.0421206 for on shares of Werner Enterprises, Inc. (NASDAQ:WERN). Technical traders will watch the AO especially when it crosses above or below the zero line. A move above the line may signal a bullish scenario. A move below the zero line may indicate a bearish selling opportunity. The AO may prove to be a valuable tool for many momentum traders.
Taking a look at the Donchian Channels indicator, we note that the 20 day lower band is 29.02. The 20 day upper band is 31.83. This indicator was created by Richard Donchian, and traders follow these channels to help identify potential trading signals.
Investors have the ability to approach the stock market from various angles. This may include using technical analysis, fundamental analysis, or a combination or the two. Investors watching the technical levels may be trying to chart patterns and discover trends in stock price movement. Investors tracking the fundamentals may be looking closely at many different factors. They may be focused on industry performance, earnings estimates, dividend payouts, and other factors. They might also be studying how the company is run, and trying to figure out the true value of the firm. Keeping track of all the data may seem overwhelming, but it may help give a needed boost to the portfolio.