Comcast Corp A (CMCSA) are being monitored this week as the Schaff Trend Cycle levels have shown a consistent downtrend over the course of the past 5 trading sessions. If the levels breach the key 30 level, a market reversal will be likely, according to this signal.
The Schaff indicator, created by Doug Schaff in 2008, behaves in a way like an oscillator, identifying overbought and oversold conditions in the market. These scenarios are then used to trade price reversals. A modification of the simple overbought or oversold trade setup is the addition of the 100-period exponential moving average, which is used by institutional traders as a very powerful support-resistance tool. The Stochastics oscillator is used to add confirmation to the trade entry.
Oversold values are 0 to 20 and investors might look to buy dips in up trends when the signal line crosses up from below 20 to above 20. Overbought values are 70 to 100 and investors might look to sell rallies in downtrends when the signal line crosses down from above 80 to below 80.
One of the most important factors that investors look at when examining stocks is the consistency of earnings results. When the quarterly earnings report is released, investors watch closely to see if the company is performing up to expectations. A company that fails to meet projections may see large price swings following the report. Of course one bad quarter may not signal trouble, but a company that continually disappoints during earnings season may need to be further examined to help figure out what is going on. Experienced investors will closely watch stock price movements before and after earnings events in order to gain a truer understanding of how the market is reacting to the reports.
Taking a deeper look into the technicals, at the time of writing, the 14-day ADX for Comcast Corp A (CMCSA) is standing at 24.12. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.
What Is ADX?
The Average Directional Index or ADX. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.
Investors may be trying to find stocks that are building momentum. Finding these stocks may help bolster the portfolio going into the second half of the year. Investors often look to pounce on any opportunity in the stock market. Without properly being prepared, these opportunities may disappear quickly. Staying on top of fundamentals, technicals, and earnings, may help investors stay prepared.
Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for Comcast Corp A (CMCSA) is sitting at -56.64. CCI is an indicator used in technical analysis that was designed by Donald Lambert. Although it was originally intended for commodity traders to help identify the start and finish of market trends, it is frequently used to analyze stocks as well. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold).
Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward. Shares of Comcast Corp A (CMCSA) have a 7-day moving average of 41.23. Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 42.23, the 7-day stands at 38.19, and the 3-day is sitting at 43.53.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.
Individual investors often strive to create a solid strategy before trying to take on the market. Setting up realistic, attainable goals, may be a good place for the amateur to start. There are many different approaches that the investor can take when getting into the stock market. Some investors will try to follow strategies that have worked for others in the past. Sometimes this will work, and sometimes it will not. Markets and economic landscapes are constantly changing. A strategy that worked yesterday may not work again tomorrow. Investors who put in the time to do the necessary homework may find themselves much better off when the market decides to rear its ugly head at some point down the road.