Technical Focus: MACD Levels in Focus for American Equity Investment Life (AEL)

Looking at the recent signals on shares of American Equity Investment Life (AEL), we can see that the short-term MACD indicator is presently pointing to a Sell. The MACD is typically used to measure bullish or bearish price movements. The MACD signal direction is currently reading Strongest. Switching to another short-term indicator, we have noted that the current 7-day average directional indicator is Sell. This signal may be used to determine the market trend. The 7-day average directional direction is currently Weakest. 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. The 7-day directional strength is Minimum. This trend strength indicator measures the signal based on historical performance where minimum would indicate the weakest, and maximum would represent the strongest. 

A certain stock price rally by itself may not be sufficient evidence when making important investing decisions. To understand whether buying a stock at a higher price is justified by its long-term return potential, it is necessary to keep the finger on the pulse of underlying fundamentals. Following the latest data may help investors make the tough portfolio decisions. Investors may also want to set personal financial goals to help ensure that they are staying on the proper track. Financial professionals may be debating if global economic growth appears to be in a modest uptrend. This may have investors scrambling to study if developing markets are indeed growing with developed markets. This year could end up being the first year in a while where this has happened. The longer the bull market run, the tougher the investing decisions might be for the stock picker.

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 36.34. On the other side, investors may be taking note of the first support level which is currently 34.96.

Looking further, we can see that the current 9 day MACD for American Equity Investment Life (AEL) has been noted at -0.45. 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 -1.26. This represents a percent change of -3.40% 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 5.1. 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 American Equity Investment Life (AEL) currently have a standard deviation of +2.86. 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 35.47. 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 often closely follow fundamental and technical data. Even with all the evidence, it can be tough to determine if the economy and the markets are preparing for a whole new breakout run. With the recent trend resulting in a series of new all-time record highs, investors will have to put the pieces together to try and gauge how long the second longest bull market in history will continue. Some professionals are still wondering if the next recession is looming, and if a bear market is right around the corner. Investors commonly strive to locate the highest probability of success. The next goal may be to capitalize on what could become the most interesting part of the record bull market. Investors will most likely be concentrating on what has proven to work in the past, which may offer a better idea as to how successful the strategies will be heading into the second half of the year and beyond.