Investor Arena: Tracking Shares of CBS Corp (CBS.A)

Watching the shorter-term MACD oscillator on shares of CBS Corp (CBS.A), we have noted that the signal is currently showing Sell. The MACD is typically used to measure bullish or bearish price movements. The MACD signal direction is currently reading Strongest. Shifting to another short-term indicator review, we note that the current 7-day average directional indicator is Sell. This signal may be used to determine the market trend. The 7-day directional strength is Strong. This trend strength indicator measures the signal based on historical performance where minimum would indicate the weakest, and maximum would represent the strongest. The 7-day average directional direction is currently Strengthening. This signal indicates whether the Buy or Sell signal is getting stronger or weakening, or whether the Hold is leaning towards a Buy or Sell.

One of the most basic ideas that goes along with the stock market is buy low and sell high. Although this advice is overly obvious, many new investors will do the exact opposite when trading stocks. Inexperienced investors have the tendency to buy stocks that have been performing the best recently. This may be caused by certain factors such as not looking into the underlying fundamentals or just hoping that the stock will continue to rise. Rookie investors may also make the error of holding onto shares that continue to drop in value. Instead of cutting the loser loose, they hold off with the hope that eventually the stock will at least get back to the breakeven point. 

Looking further, we can see that the current 9 day MACD for CBS Corp (CBS.A) has been noted at -2.01. This value represents the difference between a short-term and a long-term moving average. A reading above zero may offer a bullish signal, and a value below zero may indicate a bearish signal. Going a little further, we can see that the difference between the most recent close and the close one month ago is presently -6.76. This represents a percent change of -11.72% over that period of time. Taking a look back to the start of the calendar year, we can see that the price change has been noted at -8.84. Investors may be trying to gauge which way company shares will trend in the second half of the calendar year. As companies start reporting quarterly earnings, everyone will be focused on how the actual numbers stack up against analyst estimates. An earnings beat may prod company shares higher, while a miss may stall momentum.

Shares of CBS Corp (CBS.A) currently have a standard deviation of -0.45. Standard deviation is defined as a measure of the dispersion from the mean in regards to a data set. When dealing with financial instruments, the standard deviation is applied to the annual rate of return to help gauge the volatility of a specific investment. Tracking the standard deviation may help investors with trying to project if a stock is primed for a major move. The stock’s current pivot is 51.02. The pivot point is frequently used as a trend indicator. The pivot is the average of the close, low, and high of the prior trading period.

Investors are often watching stock price support and resistance levels. The support is a level where shares may see a rebound after they have fallen. If the stock price manages to break through the first support level, the attention may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it touches a certain level of resistance. After a recent look, the stock’s first resistance level is 51.1. On the other side, investors may be taking note of the first support level which is currently 50.86.

Investors might be looking to find some bargains to add to the portfolio as we move closer towards the end of the year. Maybe some of the earlier portfolio picks don’t look as promising as they did a few months ago. There might also be a few names that have fallen off a cliff and do not look they will be returning to previous levels. Investors may be searching for a few overlooked stocks that the rest of the investing community has passed on for whatever reason. Nobody knows for sure what the next couple of quarters have in store. As earnings season kicks off, investors will be closely following the companies that manage to beat expectations by a wide margin.  

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