Magna International Inc (MG.TO) shares are showing positive momentum over the past week as the stock has clocked in with gains of 6.51%. In taking a look at recent performance, we can see that shares have moved 16.52% over the past 4-weeks, 22.42% over the past half year and 0.37% over the past full year.
When looking at technical analysis, one of the leading concepts is that of the trend. Chartists are constantly looking to identify trends to help determine which way a stock price is moving. Trends may not always be easy to spot, but they can be highly useful when identified. When looking at the stock market, an example of an upward trend is generally classified as a stock price that over time keeps reaching higher highs and higher lows. On the flip side, a downward trend is usually identified by spotting a stock that has been hitting lower lows and lower highs. Defining trends may take the novice trader some time to figure out, but learning how to properly study charts may help bring in steady profits in the future.
Traders may be narrowing in on the ATR or Average True Range indicator when reviewing technicals. At the time of writing, Magna International Inc (MG.TO) has a 14-day ATR of 1.33. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.
Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Magna International Inc (MG.TO)’s Williams Percent Range or 14 day Williams %R is resting at -0.90. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.
Investors may use multiple technical indicators to help spot trends and buy/sell signals. Presently, Magna International Inc (MG.TO) has a 14-day Commodity Channel Index (CCI) of 159.99. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.
The Average Directional Index or ADX is a popular technical indicator designed to help measure trend strength. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies. Presently, the 14-day ADX for Magna International Inc (MG.TO) is 34.44. In general, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The ADX alone was designed to measure trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well.
Taking a peek at some Moving Averages, the 200-day is at 68.24, the 50-day is 68.40, and the 7-day is sitting at 72.99. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.
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