March 16, 2019 at 8:27 pm

Donchian Channels Under Watch for Diageo plc (NYSE:DEO): 20 Day Upper Hits 164


With the stock market trading at current levels, investors may be tossing around ideas about how to trade the next few quarters. As we slip further into the second half of the year, investors may be assessing the latest earnings reports and trying to calculate the future prospects of certain stocks. Finding bargain stocks at current levels may be much harder than spotting hidden gems when markets are down. Plowing through the fundamentals may help sort out some of the questions that investors may have that come along with trading at these levels. Investors may have to do a little more homework in order to identify that next great trade, but the rewards may be well worth the extra time and effort.

Checking in on the Awesome Oscillator, we see that the reading is 4.073338 on shares of Diageo plc (NYSE:DEO). 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.

Trading on volume of 3200, Diageo plc (NYSE:DEO) has seen a change from the open of -0.15 since the stock opened at 163.35. Monitoring today’s activity, the stock has hit a high point of 163.39 and slipped to a low of 163.15. 

The 20 day Keltner Channels upper envelope is 160.81454. The 20 day Keltner Channels lower envelope is 158.84348. 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 164. For the same period, the lower band level is 155.59.

Shares of Diageo plc (NYSE:DEO) ended last session at 163.2. Following today’s trade, we note that the stock has moved -0.11628619% since the opening bell. The company has a current market cap of 97147630000. The stock’s high price over the last month is presently 164.07.

Watching volatility readings, we can see the current value for the stock is 1.5944073. Volatility for the week stands at 0.6832653, and the monthly reading is 0.74749476. 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 5.0637407.

Following the Chaikin Money Flow indicator, we note that the current 20 day value is 0.005526419. 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 “Strong Buy”.

Investors will most likely make plenty of mistakes when dealing with the equity market. Learning from these mistakes is what will propel the individual forward. Those who don’t learn from their mistakes are destined to repeat, and failure might be right around the corner. Every investor strives to spot that uncovered stock before it explodes. However, chasing returns from big winners that have already made their moves may end up leaving the investor befuddled. Even though a stock has been hot, there is no guarantee that it will stay hot. Many investors may get stock tips from friends or colleagues. Of course the tips may be legitimate, but they could just be irrelevant. When it comes to stock picking strategies, investors might be best served to make sure that they have done the actual research themselves. Making trades based on tips or rumors may place the investor in a tough spot for future market success.