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.
Traders following the stock may be watching SMA or Simple Moving Average Levels. Many traders will be watching out for when the shorter-term averages cross above the longer-term averages as this may point to the start of an uptrend. Let’s look at the following SMA readings for PG&E Corporation (NYSE:PCG):
SMA 50 day: 20.744472
SMA 30 day: 21.12412
SMA 200 day: 19.757908
SMA 20 day: 20.35638
SMA 100 day: 19.763761
SMA 10 day18.88311
Traders following the Hull Moving Average will note that the current level is 18.14882074 on shares of PG&E Corporation (NYSE:PCG). The calculation uses the weighted moving average and it puts the emphasis on recent prices over older prices.
Technical analysis on the stock may include following the Keltner Channels indicator. Currently, the 20 day upper band is 20.69238785. The 20 day lower band is noted at 19.01930713. The KC indicator is considered a lagging indicator. Traders may use the values to help spot overbought and oversold conditions.
Traders following the Chaikin Money Flow indicator will note that the current 20 day reading is -0.23876768. The CMF value will fluctuate between 1 and -1. In general, a value closer to 1 would indicate higher buying pressure. A value closer to -1 would represent higher selling pressure.
Taking a look at some historical highs and lows for PG&E Corporation (NYSE:PCG), we see that the all time high is currently 71.57, and the all time low is 5.07. Investors often pay added attention to a stock when it is nearing a historical high point or low point. For the last year, the high price is 49.42, and the low price stands at 5.07. For the last six months, the high was seen at 25.19, and the low was tracked at 6.31. If we move in closer, the three month high/low is 25.19/16.27, and the one month high/low is 25.19/17.33.
Technical traders focusing on Donchian Channels will note that the 20 period lower band reading is currently 17.33. The 20 period upper band reading is 23.0999. Donchian Channels can be used to gauge the volatility of a market. This is a banded indicator akin to Bollinger Bands.
Putting a closer focus on shares of PG&E Corporation (NYSE:PCG), we see that since the opening price of 18.76, the stock has moved -0.34. Tracking shares, we note that the consensus stock rating is Sell. Volume today clocks in around 2091698. Over the course of the current session, the stock has topped out at 18.9 and seen a low price of 18.34. Investors will be putting 7/29/2019 on the schedule as the company is slated to next report earnings around that date.
Traders have the ability to use a wide range of indicators when studying stocks. Each trader will typically find a few indicators that they heavily rely on. The Ichimoku Cloud indicator works to identify trend direction, gauge momentum, and identify trading opportunities based on crossovers. We can view some Ichimoku indicator levels below:
Ichimoku Lead 1: 22.32
Ichimoku Lead 2: 20.73
Ichimoku Cloud Base Line: 20.72485
Ichimoku Cloud Conversion Line: 19.31
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.