Market Corner: Viewing Technicals on shares of Silver Standard Resources Inc (SSRM) as MACD Signals a “Buy”

Investors may be studying recent technical signals on shares of Silver Standard Resources Inc (SSRM). Watching the longer-term MACD oscillator indicator, we have seen that the signal is Buy. The MACD is typically used to measure bullish or bearish price movements. The direction of the MACD signal is currently Weakest. 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 11.38. On the other end of the spectrum, the low price for the session is currently 11.13. After noting recent price levels, we can see that the change from today’s open is presently -0.25.

Investors who have stayed on the sidelines may be considering if the markets will continue to rally higher. Staying vigilant and watching for signs of the next bear may prove to be a crucial element for helping to guide certain portfolio moves. Keeping an eye on historical corrections as well as sentiment and technicals, may help provide the proper insight needed. Investors may be mindful of any meaningful pullback or correction, and they may have a certain percentage in mind for when things seem to be getting out of hand. Cautious optimism may prove to be a profit saver when the bearish winds start to blow. Investors may need to figure out a plan for when to take some profit off the table. Conducting thorough fundamental research on stocks even after they have broken out may help the investor understand the reason behind the move, and whether it is likely to continue or if it is just a temporary spike. 

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, Silver Standard Resources Inc (SSRM) has a 1 month average of 691048, a 3 month average of 948810. Focusing on another technical indicator, the stock currently has a 9 day raw stochastic value of 7.53%. This value (ranging from 0-100%) shows where the stock price closed relative to the price range over the given period.

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The current analyst rating on shares of Silver Standard Resources Inc (SSRM) is 4.1666666666667. 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 15.17. Over the same period, shares have dipped to a low of 8.11. Investors and analysts will be curious to see how shares perform heading into the second half of the calendar year.

Keeping tabs on some alternate data, we can see that the stock has a current weighted alpha of +6.00. 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 searching for stocks that are undervalued. Scanning the markets during obvious pullbacks may be one strategy, but it may take a more concerted effort to identify these names if the market decides to climb further. Getting caught up in the details from news and various economic reports may leave the average investor dizzy and confused. Focusing on the most important data sets may be helpful when trying to muffle all the noise. Heading into the next quarter, investors will be watching which companies are experiencing positive earnings momentum. Often times, earnings that vastly beat expectations may cause the stock to skyrocket. Filling the portfolio with stocks experiencing positive earnings momentum may be a popular choice. Investors may want to look a little bit deeper into the situation to make sure that the momentum is justified. Some investors may already be adept at figuring this out while others may need to put in a bit more work. 

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