Things You Need to Observe in Market Stock. Is there any sign that a stock price is going to go up or down? What do we have to pay attention to in order to predict the movement of the price? There are seven things you can observe actually. All you need to do is to recognize them.
1. News and Rumors.
Pay close attention to the news. Mergers, takeovers, acquisitions, new product releases, new CEOs will definitely affect the company’s stoke price in the market. Read your business newspapers and watch the business news to get the best prediction.
High open interest can mean someone is probably hedging his positions. But you can use it to tell the possibilities of the future too. The higher the interest, the higher it should catch your attention too.
3. Analyst Upgrades
You can expect a rising of stock price every time a big financial firm upgrades a stock or initiate coverage.
This very special formula can help you with the overbought and oversold points you should watch. Investopedia will break down the math for all you engineers out there.
One of powerful indicators is MAC-D: Moving Average Convergence / Divergence. Using one to confirm the other is a great way to super-charge your screening process.
The volume always goes first before the price. When you see a stock made a large move, it is sure that some days after that the price will go up too.
7. Price Movement
At last, one of the most important things to observe is of course the stock’s price itself. When the price stops rising, then it surely will go down, just like an apple falling to the ground after you throw it up to the air. Observe in Market Stock.