I personally refer to technical analysis for my short-term entry and exit decisions.
Especially refer to some important price moving averages, such as 200-day simple moving average (SMA)
Because SMA200 more reflects the reversal of a long-term trend, when the price moves near an important moving average, it usually acts as pressure or support.
According to Investorpedia, the 200-day and 50-day moving averages are sometimes used together, with crossovers between the two lines considered technically significant：
Death Cross
Golden Cross
For example, after reviewing some of the stocks that rose well on Tuesday, I think the next trend of a few stocks is worth noting, or may usher in a turn around 200SMA area.
1. $Agilent(A)$ After the company’s Q3 earnings data were positive, it led the S&P 500 index to rise on Tuesday. However, A may currently encourage the price resistance of 200SMA, or a correction may be necessary. However, if it successfully breaks through upward, there will be better room for future gains.
2. $Waters(WAT)$ In the same way, WAT also requires a similar scenario,
3.$Wal-Mart(WMT)$’s stock price closed higher at the 200SMA line on Tuesday. If this support is effective, it may usher in more rebounds in the short term.
5. $McDonald's(MCD)$ has been rising for more than a month, and after a lapse of 2 months, it has regained the 200SMA.
6. $Travelers(TRV)$ stood above the 200SMA on Tuesday, and the 50SMA is also turning upward, and the overall price trend may remain optimistic.
7. $Entergy(ETR)$ also challenged the 200SMA on Tuesday, and the 30SMA showed an upward golden cross to the 50SMA. It needs to be observed to confirm whether it can successfully break through.
Of course, I think these references are suitable for short-term buying and selling decisions.
If you want to judge the long-term value of a stock, you also need to refer to whether the company's fundamentals are healthy, whether its cash capacity is strong, and whether the company's business growth is high? Has the price been priced in or not? Whether the valuation is relatively low and etc.
Overall, I think this recent trend of market conditions is quite optimistic, and is still promising for some companies that are at a safe price stage.
Welcome to join your opinion.
Comments