Trading Notebook: 20 Day Lower Donchian Band at 14.01 for Sierra Wireless, Inc. (NASDAQ:SWIR)

Stock market investors often rely on fundamental analysis for stock research. The EPS or earnings per share ratio shows the amount of company earnings that can be attributed to every share that is held. EPS lets investors directly compare one company to another when examining potential investments. Investors are typically searching for stocks that have a growing EPS. The EPS measure tends to be more telling when viewed over a longer period of time. When companies report quarterly earnings, the EPS measure is highly scrutinized by investors and analysts alike.

Shares of Sierra Wireless, Inc. (NASDAQ:SWIR) ended last session at 15.14. Following today’s trade, we note that the stock has moved -0.13192612% since the opening bell. The company has a current market cap of 547287500. The stock’s high price over the last month is presently 15.38.

Following the Chaikin Money Flow indicator, we note that the current 20 day value is 0.11038926 for Sierra Wireless, Inc. (NASDAQ:SWIR). Traders will watch to see if the indicator can help confirm an ongoing trend. In the midst of a bullish trend, the CMF value staying above zero may point to continuous buying pressure and the possibility of a sustained rise in price. In the midst of a bearish trend, the CMF value staying below zero may show continuous selling pressure and the possibility of continued price decline.

Scanning the equity market, we note that the stock’s current Oscillator Rating is showing “Buy”. Traders will take note of many different factors when examining a stock’s health. Flipping over to the Moving Average Rating, we see that the current sentiment is pointing to a “Buy”.

Watching volatility readings, we can see the current value for the stock is 1.8543047. Volatility for the week stands at 2.116294, and the monthly reading is 3.2714577. Volatility involves the amount of risk in relation to the amount of change in a stock’s value. Tracking the Bull Bear Power, we note that the stock is presently 0.48156863.

The 20 day Keltner Channels upper envelope is 15.031006. The 20 day Keltner Channels lower envelope is 14.491743. The Keltner Channels indicator was introduced by Chester Keltner in his book How to Make Money in Commodities. Keltner’s ideas have since been expanded upon and are widely used by technical traders.

Donchian Channels may be useful for technical traders. The primary function of the indicator is to measure volatility. The bands will widen when volatility is high, and they will become narrow with low volatility. The 20 day upper band level is 15.38. For the same period, the lower band level is 14.01.

Trading on volume of 58810, Sierra Wireless, Inc. (NASDAQ:SWIR) has seen a change from the open of -0.02 since the stock opened at 15.16. Monitoring today’s activity, the stock has hit a high point of 15.22 and slipped to a low of 15.1. 

Checking in on the Awesome Oscillator, we see that the reading is 0.82354856. Traders may follow this oscillator to measure market momentum. Created by Bill Williams, the Awesome Oscillator calculates the difference of the 5 period and 34 period SMA.

For technical traders, support and resistance lines play an important role. The support line generally displays the lowest price that investors will let a stock trade. This means that the stock price is unlikely to drop under this level. When support lines are breached, chartists may be watching for shares to move lower until they reach the next support level. The resistance line is the exact opposite of the support line. The resistance level is typically the highest price that investors will allow the stock to trade at. Traders will carefully watch the stock price when a resistance level is broken. The thought is that the price will continue to move towards the next level of resistance. Traders and investors may use support and resistance lines for various purposes. One popular use of these lines is to identify possible entry and exit points for trades.

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