Trading Scope: Following the Buy Signal on Shares of New Gold Inc (NGD)

Looking at the longer-term MACD oscillator indicator on shares of New Gold Inc (NGD), we can see the reading is currently Buy. The MACD is generally used to gauge bullish or bearish price movements. The direction of the MACD signal is currently Strengthening. Taking a peek at the 50-day parabolic time/price signal, we can see the signal is presently displaying a Sell. Let’s take a quick look at some recent stock price activity. At the time of writing, the high price for the current session is 0.92. On the other end of the spectrum, the low price for the session is currently 0.84. After noting recent price levels, we can see that the change from today’s open is presently -0.07.

Investors have various approaches they can take when deciding what stocks to stuff the portfolio with. Some investors may choose to use fundamental analysis, and some may choose to use technical analysis. Others may employ a combination of the two approaches to make sure no stone is left unturned. Investors looking for bargains in the market may be on the lookout for the stock that offers the best value. This may involve finding stocks that have fallen out of favor with the overall investing community but still have low PE ratios and higher dividend yields. Whatever approach is used, investors may benefit greatly from making sure that all the homework is done, and all of the angles have been examined properly. 

Keeping tabs on some alternate data, we can see that the stock has a current weighted alpha of -55.80. The weighted alpha measures how much shares have increased or decreased over the full year time frame. The weighting assigns greater emphasis on more recent activity giving a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that the stock has risen over the last year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help identify stocks that are building momentum.

Investors may be trying to identify volume trends over time. Some investors may look for consistency, while others may be interested in peculiar activity. Taking a look at some historical average volume numbers, New Gold Inc (NGD) has a 1 month average of 4574146, a 3 month average of 3802100. Focusing on another technical indicator, the stock currently has a 9 day raw stochastic value of 2.04%. This value (ranging from 0-100%) shows where the stock price closed relative to the price range over the given period.

The current analyst rating on shares of New Gold Inc (NGD) is 2.5833333333333. This is based on a scale where a 5 would indicate a Strong Buy, a 4 would equal a Moderate Buy, 3 a hold, 2 a moderate sell, and a rating of 1 would indicate a Strong Sell. Investors often like to keep track of what the sell-side analysts think about certain stocks. Professional Street analysts that cover specific stocks may have deeper knowledge regarding the current health of the company. Analysts may be more active around earnings report periods. They will often make updates to estimates prior to and after a company’s quarterly release. Shifting gears, we can take a brief look at how the stock has fared over the past year. After a recent look, we have noted that the stock’s high price over the past 52-weeks is presently 2.72. Over the same period, shares have dipped to a low of 0.69. Investors and analysts will be curious to see how shares perform heading into the second half of the calendar year.

Investors may be employing many various trading strategies when approaching the markets. Investors may be hoping for sustained upward trends where stocks calmly and steadily advance in that direction. Of course, this isn’t typically the case. Having some foreign exposure in the portfolio may provide overall diversification and also potentially boost performance over time. Investing globally may entail considering the risks of investing in economies that are inherently less developed and thus less liquid. A diversified approach may target foreign markets that have solid growth potential and favorable domestic conditions, such as a stable political setting. Investing globally may require much more research and dedication in order to fully understand the ins and outs.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.