March 16, 2019 at 2:36 pm

Technical Review: Donchian Lower Band Touches 8.215 for Barclays PLC (NYSE:BCS)


There are various ways that the individual investor can approach stock picking. Starting from the top-down, investors may study overall market trends. This may include examining different sectors looking for the ones that are poised to prosper in the future. Once potential industries or sectors are identified, the investor can then start to sift through individual stocks within those groups. Investors starting from the bottom up may do just the opposite. They may choose to study individual companies that have been displaying strong performance, regardless of which sector they belong to. 

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 8.805 on shares of Barclays PLC (NYSE:BCS). For the same period, the lower band level is 8.215.

Trading on volume of 30070, Barclays PLC (NYSE:BCS) has seen a change from the open of -0.015 since the stock opened at 8.785. Monitoring today’s activity, the stock has hit a high point of 8.805 and slipped to a low of 8.765. 

The 20 day Keltner Channels upper envelope is 8.681452. The 20 day Keltner Channels lower envelope is 8.498672. 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.

Watching volatility readings, we can see the current value for the stock is 1.2514352. Volatility for the week stands at 1.1719534, and the monthly reading is 1.487311. 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 0.31191623.

Following the Chaikin Money Flow indicator, we note that the current 20 day value is 0.20754084. 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 “Neutral”. 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”.

Checking in on the Awesome Oscillator, we see that the reading is 0.18030882 for Barclays PLC (NYSE:BCS). 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.

Amateur investors can sometimes become overwhelmed by the speed and volatility of the stock market. Often times, avoiding big mistakes early on can be the difference between staying in the game or being prematurely forced to the sidelines. One of the biggest mistakes that a new investor can make is not creating a realistic plan. A well-crafted plan will generally include risk tolerance, time horizon, and amount and frequency of investments. Having a clear plan for attaining goals can help the investor stay focused when the terrain gets rocky. Another common mistake for investors is buying high and selling low. Of course, everybody preaches the buy low sell high mantra, but it is much easier said than done. Getting caught up in the day to day market swings can lead the investor to do just the opposite and become a hot stock chaser instead of a disciplined decision maker.

Shares of Barclays PLC (NYSE:BCS) ended last session at 8.77. Following today’s trade, we note that the stock has moved -0.1707456% since the opening bell. The company has a current market cap of 37428250000. The stock’s high price over the last month is presently 8.97.