by Shane Ormond
On May 21, 2020
Target reported that online sales on an average day in April exceeded last year’s Cyber-Monday sale, because if you’re not going to buy a Cuisinart Perfectemp 14 Cup Programmable Coffee Maker at the end of the world, when are you gunna buy one?
Yesterday, we looked at a Daily Price Chart of Alphabet Inc. and noted that the stock had been making a series of higher highs and higher lows.
Today’s chart is for Arch Capt. Grp. Ltd. (NYSE: ACGL).
Arch Capital Group Ltd., together with its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance products worldwide.
The current price of ACGL is trading higher than it was exactly six months ago. The On Balance Volume (OBV) Chart is shown directly below the Daily Price Chart.
Here’s what you need to know about the OBV Line: it measures how much volume is either pushing the stock up, or down. Meaning, the volume of stock that’s being sold or bought.
Using a stock’s volume in this way can confirm an uptrend by reflecting that more people are buying the stock than are selling it. Take a look at the chart below…
We can see from the OBV chart shown above that the On Balance Volume Line for ACGL is sloping up.
This indicates that the volume is heavier on up-days and buying pressure is exceeding selling pressure.
Buying pressure must continue to exceed selling pressure in order to sustain a price uptrend. So, the OBV Line is a simple indicator to use that confirms the price uptrend and its sustainability.
We’ll be sure to keep following Arch Capt. Grp. Ltd., as the stock’s buying pressure exceeds it’s selling pressure and the price uptrend continues.
Maximizing Our Profit Potential
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On December 12th, we highlighted Lululemon Athletica Inc. (NYSE: LULU), noting that LULU had been making a series of higher highs and higher lows.
If you happened to have purchased LULU shares on that day, you’d be up 12.67%.
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Editor, Chart Of The Day