Yesterday, we looked at Daily Price Chart and an OBV line for Overstock.com Inc., noting that the stock’s OBV line was sloping up.
Today’s Chart of the Day is a daily price chart for AstraZeneca (NYSE: AZN).
AstraZeneca PLC discovers, develops, and commercializes prescription medicines in the areas of oncology, cardiovascular, renal and metabolism, respiratory, autoimmunity, infection, neuroscience, and gastroenterology worldwide.
The company serves primary care and specialty care physicians through distributors and local representative offices.
You may also have heard the company’s name in the headlines recently. A coronavirus vaccine from AstraZeneca and Oxford University in the UK showed positive results in an early trial.
Now, below is a Daily Price Chart with the 50-Day Exponential Moving Average (EMA) and 100-Day EMA for AstraZeneca.
Back on April 21, the AZN 50-Day EMA (blue line below) crossed above the 100-Day EMA (red line), indicating AZN was showing a ‘buy’ signal (circled).
When the 50-Day EMA crosses above the 100-Day EMA, the stock’s buying pressure has begun to outweigh the selling pressure, signaling a ‘buy’ signal.
When the 50-Day EMA crosses below the 100-Day EMA, the selling pressure has begun to outweigh the buying pressure, signaling a ‘sell’ signal.
- 50-Day EMA line Above 100-Day EMA = Buy signal
- 50 Day EMA line Below 100-Day EMA = Sell signal
The Potential for Profits
If you had purchased AZN shares when the 50-Day EMA crossed above the 100-Day EMA on April 21 – when the stock was around $50.07 – you’d be up 15.9% by now.
Not a bad profit for a three month-long hold of a major pharmaceutical company.
Now, as you can see, the 50-Day EMA is still above the 100-Day EMA. That means the bullish trend is still in play!
As long as the 50-Day EMA remains above the 100-Day EMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this stock as it continues to trend upward.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
The Power of Options
On July 6, we highlighted Logitech Intl S. (NASDAQ: LOGI), noting that LOGI’s 1-Month Price was trading above the 10-Month SMA since March.
If you happened to have purchased LOGI shares on that day, you’d already be up 8.7%.
But… if you had purchased the right option contract, you would be up 79.2% in just over two weeks’ time!
That’s the power of options.
Editor, Chart Of The Day