Investing in the stock market has traditionally offered bigger returns than other types of investments. Along with the opportunity for higher returns comes a higher amount of risk. Stocks can be exposed to both market risk and business or financial risk. Market risk may be evident when the overall market takes a nose dive. Investors may hold stock of a company that has been performing great, but due to poor market conditions, the stock decreases in value. Investors may look to offset this risk by investing in other vehicles that don’t tend to move together. The business risk with stocks involves factors that may cause a company to perform poorly. This may include bad management, heightened competition, and declining company profits. Investors may try to limit this risk by creating a diversified portfolio including stocks from different sectors.
The Simple Moving Average or SMA is an unweighted MA. At the end of every session, the oldest data point drops off, and the newest is added. Focusing on some popular SMA levels for Encana Corporation (NYSE:ECA), we note that the 200 day is 9.637298, the 100 day is noted at 6.989715, and the 50 day clocks in at 6.024168. Looking at some other SMA levels, we see that the 10 day is 6.492, the 20 day is 6.228, and the 30 day is 5.9827.
Looking closer at shares of Encana Corporation (NYSE:ECA), investors will be watching the stock to see how it performs over the next couple of sessions. Investors often like to track historical highs and lows over certain periods in order to help with stock analysis. We can now take a brief look at some historical highs and lows for the stock:
All time low: 3
All time high: 55.34352
3 month low: 5
3 month high: 11.89
1 month low: 5
1 month high: 6.88
6 month low: 5
6 month high: 14.28
1 year low: 5
1 year high: 14.31
Traders have many tools that they can use when surveying a particular stock. Watching the Moving Average Rating, we can see that the indicator is currently pointing to a “Buy”. Looking at the Oscillator Rating, we can see that the current reading is a “Sell”. Investors will be closely watching stock action over the next few sessions to see how the stock performs.
The stock’s Hull Moving Average is currently 6.762722. Developed by Alan Hull, this fast and smooth moving average helps eliminate lag and improve smoothing. Typically, if the HMA is going higher, the trend is rising. On the other end, a falling HMA may point to a declining trend.
Traders employing technical analysis will note that the Chaikin Money Flow 20 day indicator is 0.19329105. This indicator measures money flow volume during a specified period. The value will stay between 1 and -1 and it can be used to gauge changes is selling and buying pressure.
Technical investors and traders often look to create winning charts with previously successful indicators. Figuring out the best indicators to follow may take some time and effort. Many traders will find a perfect combination of technicals that they depend on to enter or exit trades. Taking a look at some Ichimoku indicator information, we see that the Ichimoku Cloud Base Line level is 5.94. The Ichimoku Could Conversion Line reading is 6.485. From another angle, the Ichimoku Lead 1 is presently 5.935, and the Lead 2 level is 6.85.
Investors often track volatility data while studying potential stocks. Currently, Encana Corporation (NYSE:ECA)’s volatility reading is standing at 6.33694. In general, the higher the volatility, the riskier the stock. Looking out over the past week, volatility is noted at 5.946113. For the last month, volatility is at 6.1894937. Tracking the Bull Bear Power indicator, the value is currently 0.6261794.
Investors often hear the saying “buy low, sell high“. This may seem highly obvious to anybody looking to get into the stock market. Even though investors typically know they should do this, novices tend to do just the opposite, buy high and sell low. Often times, amateur investors will get carried away when a stock is trending higher. They may attempt to get in on the stock after a big move with hopes of the stock going higher and an overall thought that relates to the fear of missing out. Often times, investors will find themselves in a precarious situation when this occurs. They might have taken a chance on a stock that maybe was too good to be true. Investors may regret buying after the big move when the price has far exceeded the underlying value. Closely watching the fundamentals may help investors avoid getting into sticky situations such as buying too high.
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