There are various types of investment philosophies that investors may choose to follow when approaching the stock market. Value investing involves searching for undervalued or bargain stocks that may eventually offer solid returns. Growth investors often buy companies that have highly promising growth potential. Some investors will choose to invest with a contrarian approach. This entails making investment decisions that are opposite of what the majority are doing, such as buying when everyone else is selling and vice-versa. Socially responsible investors may be searching for companies that subscribe to a high level of ethical or moral standards.
Putting a closer focus on shares of Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM), we see that since the opening price of 43.5, the stock has moved 0.04. Tracking shares, we note that the consensus stock rating is Sell. Volume today clocks in around 140331. Over the course of the current session, the stock has topped out at 43.76 and seen a low price of 43.38. Investors will be putting 3/4/2019 on the schedule as the company is slated to next report earnings around that date.
Taking a look at some historical highs and lows for Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM), we see that the all time high is currently 67.75, and the all time low is 1.585. Investors often pay added attention to a stock when it is nearing a historical high point or low point. For the last year, the high price is 64.2, and the low price stands at 39.54. For the last six months, the high was seen at 51.86, and the low was tracked at 39.54. If we move in closer, the three month high/low is 48.8/39.54, and the one month high/low is 47.08/41.67.
Traders following the stock may be watching SMA or Simple Moving Average Levels. Many traders will be watching out for when the shorter-term averages cross above the longer-term averages as this may point to the start of an uptrend. Let’s look at the following SMA readings for Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM):
- SMA 50 day: 44.493904
- SMA 30 day: 43.811913
- SMA 200 day: 44.823677
- SMA 20 day: 43.96387
- SMA 100 day: 44.021088
- SMA 10 day44.86074
Traders following the Chaikin Money Flow indicator will note that the current 20 day reading is 0.008623092. The CMF value will fluctuate between 1 and -1. In general, a value closer to 1 would indicate higher buying pressure. A value closer to -1 would represent higher selling pressure.
Technical analysis on the stock may include following the Keltner Channels indicator. Currently, the 20 day upper band is 45.158623. The 20 day lower band is noted at 43.14984. The KC indicator is considered a lagging indicator. Traders may use the values to help spot overbought and oversold conditions.
Traders have the ability to use a wide range of indicators when studying stocks. Each trader will typically find a few indicators that they heavily rely on. The Ichimoku Cloud indicator works to identify trend direction, gauge momentum, and identify trading opportunities based on crossovers. We can view some Ichimoku indicator levels below:
- Ichimoku Lead 1: 45.02335
- Ichimoku Lead 2: 44.085
- Ichimoku Cloud Base Line: 44.375
- Ichimoku Cloud Conversion Line: 45.06
Traders following the Hull Moving Average will note that the current level is 43.3844. The calculation uses the weighted moving average and it puts the emphasis on recent prices over older prices.
Technical traders focusing on Donchian Channels will note that the 20 period lower band reading is currently 41.67. The 20 period upper band reading is 47.08. Donchian Channels can be used to gauge the volatility of a market. This is a banded indicator akin to Bollinger Bands.
Stock market triumph can be just as much about learning how to minimize losses as it is about picking winning stocks. Not even the most seasoned professional investors are right all the time. Successful investors know how to act quickly and protect themselves from big losses. Sometimes those sure-fire stock picks don’t perform as planned. Being able to detach from any emotion that one might have to a certain stock can help with being able to cut and run when the time is right. Investors will often try to convince themselves that the research was correct and the stock will bounce back, but this can lead to extended losses and future portfolio disaster. Sometimes markets or individual stocks will move in a direction that nobody expected. Being able to take a punch and move on is what may keep investors from experiencing quick defeat in the stock market.